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Thursday, February 23, 2012

Citilink sees no sibling rivalry with Garuda in expansion plans

Citilink, the low-cost carrier (LCC) strategic business unit of flag carrier Garuda Indonesia, sees no sibling rivalry in the LCC’s attempt to expand and carry more passengers because the two airlines cater to different markets.

Con Korfiatis, Citilink’s board of directors’ (BOD) technical advisor, and not its technical advisor for biological on demand as printed on Oct. 1, told The Jakarta Post on Sunday that people who wanted to fly with premium service would still choose Garuda, while budget-conscious travelers who still wanted good service would pick Citilink.

“Someone may travel a full service airline for business, but when on holiday with the family they may seek out low-cost airfares.

Where that is the case, the Garuda Indonesia Group now has a low-cost airline product to offer,” Korfiatis said over the phone.

He added that Citilink would fly the same routes as Garuda, as catering to both segments was a way to increase overall revenues. He did not foresee a trend of Garuda customers switching to Citilink.

Citilink, whose direct rivals include Air Asia Indonesia and Lion Air, was upbeat that it would win the battle with other domestic LCCs because people were buying Garuda’s good reputation and brand from Citilink, such as a good operational environment and good time performances.

“In the low-cost carrier business, we have to always provide good value for our customers,” Korfiatis said.

Citilink received its first Airbus A320 narrowbody aircraft in mid-August and expects to acquire three more in the next three months.

The arrival of the four A320s will increase Citilink’s fleet to 10 planes by the end of 2011, which currently includes the Boeing 737-300/400. Citilink will add five to 10 more airplanes in 2012.

Garuda placed a firm order to buy 25 A320s with an option for 25 more at the Paris Air Show in June.

The fleet expansion will enable Citilink to add frequency to its existing city pairs it flies today where its current frequency could not meet the demand, Korfiatis said.

The city pairs that will have more flights from twice to three times a day are Jakarta–Denpasar, Jakarta–Batam and Surabaya–Banjarmasin. Those flights will add more than 7,500 seats per week. Citilink will also start new domestic routes not currently being served in the second semester of 2012 and is currently studying which cities to fly to.

“We will commence flying regional international routes that are within reach for our A320 aircraft in late 2012 or the next year,” Korfiatis said.

Currently the LCC has 85 pilots and 150 cabin crew and plans to recruit more in 2012 to anticipate surging demand.

“Our pilots are all Indonesians today who come from within Garuda and from another airlines,” he said.

According to the International Air Transport Association (IATA), Indonesia is poised to become one of the fastest-growing markets for the airline industry despite the current financial crisis.

The IATA said that in 2014 Indonesia was expected to rank as the world’s ninth-largest market for domestic flights.

source: http://www.thejakartapost.com/news/2011/10/03/citilink-sees-no-sibling-rivalry-with-garuda-expansion-plans.html

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