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Thursday, February 23, 2012

Citilink to operate 11 A320s after receiving flight permit

National flag carrier Garuda Indonesia’s strategic business unit, Citilink, said it would operate 11 units of the new Airbus A320 this year after receiving a flight permit (SIUAU) from the Transportation Ministry in Jakarta on Monday.

Citilink vice president Con Korfiatis said the 11 additional A320 aircraft would bring the airline up to an operational fleet of 20, consisting of 15 A320s and five Boeing B737-400s given by Garuda Indonesia after a spin-off.

He said two units of the A320 were scheduled to arrive in February.

“Citilink has restructured itself to be the best low-cost carrier airline service and has become an aggressive player in Indonesia,” Korfiatis told the press.

Currently, the airline operates 9 aircraft: 1 B737-300, 5 B737-400s, and 3 A320s, but the B737-300 will no longer be in operation later this year.

Korfiatis said the airline had also been processing its Air Operator Certificate (AOC) that may take a few months to complete.

Elisa Lumbantoruan, Garuda Indonesia finance director, said the AOC could be finished by March.

“We will also inject Rp 430 billion [US$48.16 million] to Citilink as paid-up capital,” he said.

Based on the SIUAU, Citilink is given rights to fly 70 domestic routes and 16 international routes.

Currently, the airline serves 9 domestic routes including Jakarta–Denpasar, Jakarta–Surabaya, Jakarta–Banjarmasin, Surabaya–Makassar and Jakarta–Medan.

With more aircraft, Citilink could add more flights to its existing routes and open new routes, Elisa said.

“Citilink will increase Jakarta–Surabaya flights from seven to nine a day, and Jakarta–Denpasar flights from two to five a day,” he said.

The airline will also open new routes: Jakarta–Pekanbaru, Jakarta–Padang, and Jakarta–Yogyakarta in the second quarter of this year.

The airline will have two flights a day for each route, he said.

In addition, he said that the airline expected to fly 4 million passengers this year, a 150 percent increase from 1.6 million passengers in 2011. “Citilink is also planning to carry out an Initial Public Offering in 2014,” he said.

Citilink will compete with other budget carriers, including Indonesia AirAsia (IAA). Late last year, IAA said it would open new routes linking several Indonesian tourist destinations to major ASEAN cities to support tourism in the country.

IAA said the airline would soon link destinations such as Mataram in West Nusa Tenggara to major cities in ASEAN, such as Singapore and Bangkok.

IAA added that 45 percent of the Air Asia Group’s routes were “unique” routes that linked one city to another, which no other airline served. 

source: http://www.thejakartapost.com/news/2012/01/31/citilink-operate-11-a320s-after-receiving-flight-permit.html

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