Jakarta, The Indonesia Post – The Minister of Tourism and Creative Economy (Menparekraf) Sandiaga Uno revealed that the aviation business was the most difficult business he had ever undertaken, he even revealed his failure to build a business that only lasted two years.
“But these cheap tickets have become a problem and I have been asked directly by the President several times. In my opinion, because before I served in the ministry, I also had an aviation business. And spectacularly within two years my business closed. Because, in my opinion, this is the most difficult business, this aviation business,” he said in The Weekly Brief with Sandi Uno which was monitored online in Jakarta, Monday.
According to him, at that time the biggest factor that caused the low-cost airline, Tigerair Mandala to go out of business in July 2014, was the high price of Avtur fuel. In fact, according to him, about 80 percent of the problem is in the fuel factor.
“And the fuel in Indonesia is expensive compared to abroad, especially in the Middle East,” he added.
Another problem in the aviation business is the flight routes and airport slots which are bound by strict regulations. However, the government has now opened all routes.
And now it leaves another problem namely the shortage of aircraft fleet, one of which is the state-owned airline Garuda Indonesia which has airport routes and slots, but does not have planes.
“Lion Air is a little better, has planes, has orders that have been confirmed but it doesn’t have (flight routes) and doesn’t have slots like we want,” he explained.
Another thing that is also a problem is the supply chain which is still hampered. Nevertheless, he saw the first quarter and second quarter, tickets will start to decline.
By opening up new opportunities for foreign airlines to fly directly to Indonesia, it is hoped that airfare prices will decrease, in line with efforts to communicate with international airlines such as Qatar-Emirates, which have the capacity to procure more aircraft. (mhn/bbs)
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