Thursday, March 5, 2009

AirAsia expects Singapore-Indonesia routes to do well

AirAsia expects its new routes between Singapore and four Indonesian cities to do well, judging from the over 50,000 seats snapped up during its six-day promotion sale last week despite the current gloomy economic conditions.

From March 24, the low-cost carrier’s Indonesian operations will start to operate four direct scheduled flights from Singapore to Jakarta twice daily, and to Bali, Bandung and Yogyakarta daily.

AirAsia’s commercial regional head Kathleen Tan said "people still need to fly despite the economic slowdown", adding that some would fly out just to de-stress themselves from the economic doldrums and Indonesia could provide the suitable holiday spots for such people.

At a media briefing in Singapore earlier this week, she said the new routes would be popular among Singaporeans and the airline was targeting between 60% and 80% of passenger load to each destinations.

On the Singapore market, Tan said the airline hoped to attract business travellers, families and students for the four new air services.

Indonesia AirAsia’s chief executive officer Dharmadi said the airline hoped the new routes could help stimulate the tourism industry in Indonesia and Singapore as the cheap fares and frequencies would attract more tourists from both sides.

He said Indonesia received over a million visitors from Singapore last year while about 1.76 million Indonesians visited the island republic.

Dharmadi also said that AirAsia planned to expand its air services from Singapore to include other major Indonesian cities such as Medan, Balikpapan and Semarang by this year.

Currently, AirAsia only flies to Pekanbaru in Sumatra, out of Singapore.

Indonesia AirAsia is an affiliate of AirAsia Bhd, the leading and largest low-cost carrier in Asia, serving 114 routes covering 64 destinations in the region.

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