Previously, the upcoming October project had a chance to visit the new Siem Reap Angkor International Airport (SAI). The modern airport was estimated to operate on October 16, 2023, during the site visit at 00:00 hours.
The landscape offers convenient access to the provincial city and its archaeological wonders. The world-class new airport can access large aircraft. It will give unforgettable nuances, especially for international citizens departing from various regions, such as the United States and Europe.
Three well-known Indonesian airlines, Garuda Indonesia, Citilink, and Pelita Air, will set their sights on merging.
Erick Thohir, Indonesia’s Minister for State-Owned Enterprises (SOEs), has declared the blueprint to merge the three state-operated airlines, enhancing service excellence and cost-savvy as the leading factors.
As stated by Minister Erick Thohir: “SOEs (State Owned Enterprises) need to keep bringing down costs. Pelindo has been merged from four companies into one.”
The Minister explained that we are also pushing for Pelita Air, Citilink, and Garuda Indonesia to take the same gestures to increase efficiency and reduce costs.
As stated on Kompas.com, “ Later, Garuda will be premium, then Citilink and Pelita will be integrated” Erick at House of Representatives, Jakarta, Kamis (31/8/2023).
The Famous Airlines in Indonesia
- Garuda Indonesia: Powered by the national flag of Indonesia, Garuda Indonesia is well-known as a popular international airline with over 140 aircraft. Its expansion network, Garuda Indonesia, is a central hub between Indonesia and the other regions.
- Citilink: Operating as the economy class of Garuda Indonesia, Citilink has made a legacy in domestic flight history, counting the armada up to 100 aircraft. This aircraft provides seamless service to passengers eager to find challenging yet low-cost carrier choices nationwide.
- Pelita Air: Lastly, Pelita Air was founded in 2022. Offering ten aircraft, the domestic route is the only service they offer.
Aviation Industry: Get Leaner, Get Stronger
The development of this airline industry is well-known for its cost-savvy and high competitiveness. Therefore, the government has high hopes for this integration.
Equipped with unlimited resources and system operations among these airlines, the calculated decision will go public, raising the economic value of this aviation industry.
This integration brings new hopes into aviation and enables these airlines to compete with the private sector, namely, Lion Air and Sriwijaya Air, more fairly.
The integration is still at the beginning of the blueprint, and the government remains silent to make it confidential regarding its operation schedule.
“Based on its financial reports, we’ll see how the process is going. It can be this year or next year or probably at the beginning of 2024,” as mentioned before.
Industry insiders have speculated that the integration will be monetized within the next few years.
Some Pros and Cons
Some experts have contemplated diverse opinions related to this integration. Some voices have given trusting benefits that could encourage the Indonesian airline industry, some have debated its quota, and concerns about job opportunities and the declining market competition.
Some Advantages
The aims of distributing some pros of Indonesia’s aviation industry: Garuda Indonesia, Citilink, and Pelita Air.
- Cost-savvy: Aircraft, well-maintained infrastructure, and members integrated by shared resources will improve efficiency.
- Rising Efficiency: The airlines could optimize some resources equipped with well-planned flight schedules and some attempts to overbook
- Highly Competitive: This integration can boost the airline to higher domination, making it compete in a difficult path. All in all, it means that it is a piece of good news for travelers who want to enjoy affordable aircraft with better service.
Insider Threats
However, to gain a seamless integration, there are some challenges to breaking the chain of order.
- Human resources: The collaboration will consist of head counts and some problematic issues, such as sabotage from management.
- Less Competition: The huge domination could sabotage the fair competition within the Indonesian airline sector.
- Employee Issues: Employees from the three airlines can improve high reservations, some potential job threats, or reductions in their paid salary.
Conclusion
Although the future is unknown, the Indonesian government has a positive outlook for the aviation sector due to its thriving infrastructure, modern facilities, especially in big and developing cities, and incredible landscape.
This integration among three aircraft, Garuda Indonesia, Citilink, and Pelita Air, will reform the big game of aviation and its promising future and insider threats.
(Source article from Aces)
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