Indonesia Citilink Plans to Own 50 Aircrafts
“We hope that Citilink can be looked up to as a low-cost carrier."
VIVAnews – Citilink Airlines, a business unit of PT Garuda Indonesia Tbk, emphasizes its focus on cheap flights. To support the goal, Citilink is targeting to have 50 airplanes until 2015.
“We hope that Citilink can be looked up to as a low-cost carrier. We are targeting to have 50 airplanes by 2015,” said President Director of Garuda Indonesia, Emirsyah Satar, while opening Citilink’s new office in Citicon Building, Jakarta, on Wednesday.
Emirsyah said that Citilink and Garuda will complement each other. Garuda will focus on premium class passengers while Citilink will focus on cheap flights.
Garuda did not hesitate in developing Citilink for the increasingly growing middle to lower class market.
By late 2011, Citilink had reached 1.6 million passengers or up by 42%. It was still too small compared to other airlines given the huge market of low-cost carrier, said Emirsyah.
At the moment, Citilink has nine airplanes, which will be increased to 20 by 2012, 30 airplanes by 2013, and 40 airplanes by 2014. Citilink expected to have 50 airplanes by 2015. '
“10 airplanes will be added every year. The funding has been prepared,” said Emirsyah.
Finance Director of Garuda Indonesia, Elisa Lumbantoruan, said the airplanes were ordered by Garuda but will be handed over to Citilink.
“Garuda will grant five airplanes. The transfer of ownership will be carried out later,” she said.
Garuda has purchased 25 units of Airbus 320 and leased another 23 units of Airbus 320. “We still need two more airplanes for 2013 and we don’t know which aircraft to use yet,” she said.
Garuda has prepared a budget of US$450 million to finance the purchase of airplanes for Garuda and Citilink. The fund was taken from last year’s initial public offering/IPO.
She said Citilink will not start a war of cheap flights. However, with its low and efficient operational costs, Citilink can sell reasonably cheap tickets. “We will focus on low-cost flights,” she said.
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