This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.
Bisnis Indonesia - Angkutan udara: Rute internasional makin bergairah
2 October 2024
By Artha Adventy
Bisnis, Jakarta – International passenger traffic is showing signs of recovery after it plummeted due to the COVID-19 pandemic in 2020.
Statistics Indonesia (BPS) reported that the number of international passengers from January to August 2024 increased by 23.94% compared to the same period in the previous year.
Acting BPS Head Amalia A. Widyasanti stated that the number of international passengers using both national and foreign airlines in the first eight months of 2024 reached 12.3 million.
According to her, the highest passenger traffic was recorded at Soekarno-Hatta Airport, with 5.3 million passengers, representing 42.87% of the total international passenger traffic.
“This is followed by Ngurah Rai Airport in Denpasar, which recorded 4.6 million passengers, representing 37.53% of the total,” she said at a press conference on Tuesday (1/10).
She explained that in August 2024, international passengers reached 1.8 million, marking a 12.46% increase from the previous month. On a yearly basis, the number of international passengers increased by 19.31%.
In August 2024, Amalia noted that the increase in passengers occurred at all observed airports. Passenger traffic rose by 192.50% at Hasanuddin Airport in Makassar, 35.82% at Juanda Airport in Surabaya, 17.25% at Soekarno-Hatta Airport in Tangerang, 4.45% at Ngurah Rai Airport in Denpasar, and 2.27% at Kualanamu Airport in Medan.
She continued by stating that the highest number of international passengers in August 2024 was at Soekarno-Hatta Airport in Tangerang, with 774,000 passengers or 43.24% of the total international passengers. This was followed by Ngurah Rai Airport in Denpasar, which recorded 688,100 passengers, or 38.44% of the total international passengers.
Regarding domestic flights, Amalia stated that the number of passengers declined due to the low season following the school holiday period.
“Domestic flights [declined] due to the low season after the school holiday period,” Amalia stated.
In August 2024, the number of passengers on domestic flights showed an opposite trend to that of international flights.
According to data from BPS, the number of domestic passengers in August 2024 reached 5.6 million, a decrease of 7.67% from the previous month. However, she noted that the number of domestic passengers still increased by 6.37% on a yearly basis.
She indicated that the decline in domestic passengers occurred at all major airports, including Juanda Airport in Surabaya, which saw a decrease of 16.84%, Hasanuddin Airport in Makassar by 12.88%, Kualanamu Airport in Medan by 12.06%, Soekarno-Hatta Airport in Tangerang by 7.04%, and Ngurah Rai Airport in Denpasar by 1.21%.
She emphasised that Soekarno-Hatta Airport in Tangerang recorded the highest number of domestic passengers, with 1.6 million passengers, representing 29.51% of the total domestic passengers. This was followed by Ngurah Rai Airport in Denpasar, which recorded 450,700 passengers, or 8.09% of the total domestic passengers.
Cumulatively, the number of domestic passengers in the first eight months of 2024 reached 42 million, marking a slight increase of 1.50% from 41.4 million passengers in the same period the previous year.
Soekarno-Hatta Airport in Tangerang remains the highest, with 12.3 million domestic passengers, accounting for 29.14% of the total domestic passengers. This is followed by Juanda Airport in Surabaya, which recorded 3.5 million domestic passengers, or 8.37% of the total.
Regarding international flights, the number of foreign airlines operating in Indonesia continues to increase. Recently, Korean Air announced plans to increase their flight frequency from Incheon Airport in Seoul to Denpasar, Bali, in response to the growing number of South Korean citizens wishing to holiday on the Island of the Gods.
Korean Air Country Manager to Indonesia, Tae Seok Lee, stated that Bali is the favourite destination for South Korean tourists.
“We are strengthening our presence in the market. Increasing our flight frequency to Bali and introducing new aircraft demonstrate our commitment to meeting the growing demand,” he said last week.
He explained that the increased frequency would be implemented from 20 October 2024. Currently, Korean Air operates 11 flights per week to Bali, which will be increased to 14 flights per week.
According to data from BPS, South Korea ranks fifth among the countries that send the most tourists to Bali.
This increase in tourists underscores the attractiveness of Bali to visitors from South Korea.
“This improved flight service is expected to provide more flexibility and comfort for tourists, while also strengthening the relationship between South Korea and tourism destinations in Indonesia,” he stated.
The airline, which is a member of the SkyTeam Alliance, will use the Boeing 787-10 Dreamliner aircraft on this route in the upcoming winter.
The Boeing 787-10 aircraft used by Korean Air is equipped with 289 seats in economy class and 36 seats in business class.
“Korean Air continues to demonstrate its commitment to the Indonesian market. The airline will not only enhance its services in Bali but will also maintain its daily flights from Incheon International Airport to Soekarno-Hatta International Airport in Jakarta, using the Boeing 777-300ER aircraft,” he affirmed.
New airline
Domestically, the new airline BBN Airlines Indonesia is aiming to increase its fleet to 40 aircraft by 2027.
BBN Airlines Indonesia Chairperson Marynas Grigas stated that the number of aircraft would be increased to meet the growing demand.
“With the existing fleet and the continuously increasing demand, BBN Airlines Indonesia is targeting to operate 40 aircraft by 2027,” he said in his official statement some time ago.
Currently, BBN Airlines Indonesia has prepared three Boeing 737-800 aircraft to meet passenger charter flight demands, as well as three cargo aircraft, consisting of Boeing 737-800 and Boeing 737-400 models, to serve both domestic and international flights.
For passenger services, BBN Airlines Indonesia uses the Boeing 737-800 aircraft, each with a capacity of 189 seats.
Meanwhile, flight observer Gerry Soejatman believes that BBN Airlines has the potential to compete in the aviation industry alongside other airlines such as Lion Air Group, Garuda Indonesia, and AirAsia Indonesia.
He believes that BBN Airlines Indonesia has an excellent business plan to expand its fleet in the near future.
“As long as they do not simply follow trends and carefully analyse their plan, I believe they will at least keep up in the industry,” Gerry stated.
He continued that BBN Airlines Indonesia must focus on their business plan and carefully observe what needs to be changed and what should be maintained.
The new airline BBN Airlines Indonesia officially conducted its first scheduled flight on Friday (27/9), flying the Jakarta-Surabaya route.
For its maiden flight, BBN Airlines Indonesia's aircraft flew from Soekarno-Hatta International Airport to Juanda International Airport in Surabaya and then returned to Jakarta.
On their official Instagram account, BBN Airlines Indonesia indicated that they will be establishing a flight route to Balikpapan.
Gerry added that while the introduction of BBN Airlines as a new airline is good news for competition, it does not change the challenges related to obtaining spare parts and the high import tax and excise duties for these parts.
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