Airbus seeks to make inroads in Indonesian market

Having acquired a 53 percent share of global aircraft market, European aircraft manufacturer Airbus acknowledged that it has a lot of work to do in Indonesia over the next five years, a local newspaper reported Wednesday.

Despite the claimed cost-efficient features of Airbus planes, Indonesian airlines still predominantly opt for US manufactured Boeing aircraft for their domestic and international flights.

According to Airbus figures, only six Airbus A330-300s are operated here by national flag-carrier Garuda Indonesia. By comparison, its US rival Boeing has 198 of its 737-200 models serving domestic routes in the country.

"The Indonesian airline business, especially the low cost carriers, has seen significant growth and will still grow," Airbus regional communications representative Anthony Phillips was quoted by The Jakarta Post as saying.

He added that Airbus planned to increase its domestic market share to almost 50 percent from the current figure of less than 10 percent.

"With the fact that budget airlines here use a lot of the older generation of aircraft, we hope to deliver more of our products, highlighting their cost efficiency," said Phillips.

He explained that at the moment there were 750 Airbus passenger aircraft of various types being operated by 54 airlines in Asia Pacific -- around 37 of which were low cost carriers.

The increasing number of air accidents recently has prompted the Ministry of Transportation to restrict the age of jet aircraft,including Boeing 737-200s, which are mostly over 25 years old. The regulation will become effective on Dec. 7.

Phillips pointed to the new regulation as an opportunity for the France-based company to enter the market.

"We offer the A320 model to low cost carriers," he said. An A320 model has a capacity of between 100 and 220 passengers, while its direct competitor, the Boeing 737-200, can carry up to 219 passengers," he added.

By comparison, the monthly leasing fee for a newer generation Boeing 737-200 ranges between 200,000 US dollars and 250,000.

However, most airlines in the country opt for the older generation of the plane, which costs around 80,000 dollars. This, however, involves higher fuel and maintenance costs.

Airline observer Dudi Sudibyo said the use of newer Airbus aircraft would save the companies between 20 percent and 25 percent on fuel expenses, depending on the category of the engine.

Meanwhile, an Airbus A320 is leased at 300,000 dollars for a new one and 200,000 for a used aircraft. "We are looking forward to several deals on the model with Indonesian airlines," Phillips said, without going into detail.

Source: Xinhua