Bright Prospects for Budget Airlines

To avoid being crushed by the crisis an airline company has to apply the following strategy: save fuel costs, ensure efficiency in all sectors, boost manpower productivity, strengthen reserve funds, arrange appropriate capacity on schedule and cooperate with other airline companies.

Indonesia has potential as the archipelago has many islands and a population of over 220 million, says president director of Garuda Indonesia, Emirsyah Satar. Currently Garuda has a major market in Southeast Asia. Passenger safety and comfort are very important, he adds, while the price of tickets can be reduced through Internet sales, which is one of the strategies applied by LCC.

A number of industry experts predict that LCC revenue will go up this year as passengers are switching from full service airlines, many of which are undergoing mergers due to decreased profits. (Burhan Abe)

The Jakarta Post, September 03, 2009

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