No 12 SEPTEMBER 2007 TAHUN XVII
In The News


Garuda Passes GACA Safety Audit

Garuda Indonesia announced on Aug. 2 that the state-owned airline has passed the safety oversight audit program conducted by Saudi Arabia's General Authority for Civil Aviation (GACA) on its safety flight procedures and maintenance. 

With the clean audit result, stressed Garuda president director Emirsyah Satar, Saudi Arabia has dropped its plan to ban Indonesian flag carrier from flying to the country.

"Saudi Arabia will not ban or restrict Garuda from flying to that country for either regular and haj flights," said Transportation Minister Jusman Syafii Djamal as quoted by  news agency Antara.

GACA vice president for safety and economic regulation Mohammed R. Berenji who headed the Saudi's five team members confirmed that there was already change to the ban status after the audit. The team was accompanied by Gerard Shaughnessy, ICAO's technical cooperation mission in Saudi Arabia.

Before the audit, Saudi Arabia has expressed concern over the safety procedures of the Indonesian airlines after the European Union banned 51 Indonesian carriers from flying to member countries on July 6. It warned Indonesian authorities that it might follow the EU in banning Indonesian airlines as Saudi Arabia normally follows the European Union's aviation standard. 

Indonesian authorities reacted quickly by inviting GACA officials to audit the country's airlines who arrived in Jakarta late July and immediately made sampling by auditing Garuda Indonesia.

On the subject, air transportation director general, Budhi M. Suyitno said that by end of 2008, or before the launch of an open-skies policy in the country, the local airlines should have improved their safety rating to full compliance. 

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Garuda Scoops Profit
Flag carrier Garuda Indonesia scooped profit in the first semester of this year after years in the red. The profit was the result of an increase in passengers carried and higher fares combined by efficiency program conducted by the carrier.

Emirsyah Satar announced on Aug. 2 that Garuda booked a net profit of Rp 149 billion or about US$15,93 million in the first semester of this year, compared to a net loss of about  Rp 361 billion the first six month of previous year.

"Our profit was partly the result of an increase in passenger numbers to 4.36 million from 4.07 million in the corresponding period last year," said Satar. The other contributing factors were the rise in airfares and the utilization efficiency of its aircraft fleet.

Despite reduction of its fleet to 49 aircraft from 56 previously, Garuda had managed carrying more passengers during the first semester. On the reduction, Satar mentioned that the leases of seven aircraft had not been extended.

According to Emirsyah Satar, the key of carrying more passengers with fewer aircraft was the improvement in the utilization rate per plane from an average of 8 hours and 45 minutes to 9 hours and 17 minutes per day.

Satar said, Garuda booked  revenues of Rp 5.8 trillion in the first semester, an increase of 12 percent from the Rp 5.2 trillion figures of 2006.

For three consecutive years Garuda suffered a loss of Rp 811 billion in 2004, Rp 688 tirllion in 2005 and Rp 167 trillion in 2006.

He said the yield rose from $6.7 cents to $7.2 cents, up by 8 percent year-on-year and the seat load factor grew from 70 to 76 percent in the first half.

In the efficiency program, Garuda also reduced its loss-making routes from seven to four in the first semester making currently servicing 29 routes.

The national flag carrier is expecting a further 20 percent increase in its revenues in the second half as more passengers will be flown during the year-end  peak season. 
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Megantara Cooperates with 11 Foreign Carriers
Indonesian cargo carrier Megantara Air cooperated with 11 foreign carriers in expanding its air cargo services to Europe, Africa, Middle East and America. Among the carrier were Lufthansa, Qantas, British Airways, All Nippon Airlines, Etihad Airways, Air Maritius, South African Airways and Vietnam Airlines.

"I am hoping with this cooperation Jakarta will become an air cargo hub (in this region)," said Megantara president director Sofyan Danu Siswantoro in launching his company new services at the Soekarno-Hatta Jakarta international airport Aug. 7.

He further added, plan of servicing directly to several countries in the region is under evaluation such as Kuala Lumpur, Malaysia. "This is in accordance to our fleet planning of additional two Boeing  737-200 aircraft this year," he said.

Since commencing operation in May with a Boeing 727 servicing the Jakarta-Singapore route five flights weekly, currently Megantara Air averagely up-lifted 800.000 ton of cargo monthly with an average load factor of 75 percent.

Siswantoro said that his company planned to invest additional US$14 million next year for acquiring a Boeing 727-200 and two Boeing 737-200s each with a capacity of 14 ton cargo.

Beside 11 carriers, Megantara also signed deal with Singapore's Changi International Airport Services (CIAS) and Unex Indonesia for cargo services, ground handling and warehousing.

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Viva Macau Adds Flights to Jakarta
Since Aug. 28 Viva Macau adds additional flight to Jakarta servicing the direct route linking Macao and Jakarta with four flights weekly.

The Macao carrier service the route with wide-body Boeing 767 aircraft on Tuesday, Thursday, Friday and Sunday from Macao. While from Jakarta to Macao every Monday, Wednesday, Friday and Saturday.

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Chappy Hakim :Clean Bribery from Airline Industry
Head of the safety and security transportation evaluation national team (Timnas EKKT), Chappy Hakim called for an immediate action in cleaning bribery practices from the national airline industry. The practices tolerated violating rules and regulations which among others contributed to accidents as the outcome.

"The cleaning action should immediately executed now as regulations should be abide with no tolerances. Therefore bribery practices which lead to accidents as the result, should be wipe off from the industry," stressed Chappy Hakim.

The former Air Force Chief, (ret) Marshal Chappy Hakim made the statement during a round-table discussion held in Jakarta Aug. 14, attended by Transportation Minister Jusman Sjafii Djamal, former Air Force Chief Saleh Basarah as Air Power Center of Indonesia's chairman, the operators and regulators.

Chappy Hakim further stressed, EKKT would include cleaning bribery practices in its further recommendations on safety and security issue to the President. The practices occurred among others in the process of acquiring permits such as operation permit, route permit, in importing and registering aircraft.

President Susilo Bambang Yudhyono has extended Timnas EKKT activities formed in Jan. 18, 2007 after an AdamAir's Boeing 737-400 lost in the sea of Sulawesi Strait, to end of October. 

"Our main focus now is assisting the government in recovering international trust in the transportation industry, especially on air transportation sector. The team will also monitor the implementation of the transportation ministry's zero accident program, beside giving in-put to the government," explained Chappy Hakim who headed an Indonesian delegation team to Brussels to meet European Union Commission Aug. 29 relating to the July 6 EU ban on Indonesian airlines.  

On the bribery issue, air transportation director general Budhi Maulana Suyitno during the discussion challenged the operators to name persons who had received bribes. "Please report to me, should my staffs ask for envelopes. Don't hesitate. I will take immediate action on the persons," he added. Envelopes normal were used as media in giving and receiving a sum of money or checks in the practices     

Unfortunately, none of the operators produced names during the occasion. Budhi Suyitno breaking the silent further said, "Internal stream-lining is underway and it is not easy to wipe off bribery practices. But should I find proofs my staff(s) received bribes, they will be given strict punishment," Budhi Suyitno stated.

He reminded, operators also contributed to the practices and asked them to end it by not giving no bribe envelopes any more. The practices flourished fast since the Transportation Ministry deregulated the industry in 1999. The amount varied from Rp 2 to Rp 3 billion (approximately US$200.000 to Rp US$300.000) for acquiring an AOC (air operator certificate).

Daily Kompas sources said, for new lucrative route such as Jakarta-Surabaya, the amount could reached Rp 500 million (US$50.000).Lean route linking Jakarta with Papua for an example, around Rp 50 million (US$5.000).

Bribes are also common practices in the Ministry of Trade, in the aviation sector, for importing the aircraft to the country.
 
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Air Charter Companies forms IACA
Newly born Indonesia Air Charter Association (IACA) appointed Arie Singgih of  Premiair as its chairman, assisted by Capt. Toto Hardiyanto (Gatari Air Service) and Rudiana Syamsuddin (Travira Air) for forming its board.

On a special assembly meeting chaired by Erlangga Suryadarma (Airfast) Aug. 18 at the Sultan Hotel, 23 air charter companies agreed to form IACA and appointing Arie Singgih as its first chairman with Toto Hardiyanto and Rudiana Syamsuddin assisting him in forming the board of the new association.

Before IACA founding, air charter companies were accommodated in the Indonesia National Air Carriers Association (INACA) which majority of its members are scheduled national airliners.

"I am hoping IACA do not follow political party culture of forming new party because of mere different opinion," said Chappy Hakim, head of national team for safety and security evaluation (Timnas EKKT) in his remark speech.   

He admitted, in IACA there are more intellectual persons reflecting their high standard capabilities in meeting international standard. The air charter has stricter rules and regulations and audited by international auditors as most of their clients are foreign companies.

"Seeing air charters they (international companies and auditors) see that we are not as bad as what they think of the Indonesian air transportation industry," Chappy Hakim said.

Air transportation director general, Budhi Maulana Suyitno expressed similar opinion on IACA performances in his closing remark of the meeting.

"There are two types of aircraft in the air charter business, fix and rotary wing aircraft. That;s the different to the scheduled airlines business," explained Eerlangga Suryadarma to Angkasa.

He added some IACA members also performed scheduled services in some provinces with smaller planes to destinations which unreachable by larger aircraft.

"The potential passenger traffic growth in the coming five years is very promising as some areas of the country are not accessible by 30 passenger aircraft above," Arie Singgih reminded.
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US$1 Billion and 6 Sukhoi Fighters from Rusia
On the opening of MAKS-2007, Russian aircraft manufacturer Sukhoi announced procurement of six fighter jets from Indonesia worth US$300 million, a first in the Russian airshow. It was uncommon in the past, procurements were announced either in the opening or at the closing day of the Russian airshow which was opened by President Vladimir Putin Aug. 21 and held in the town of Zhukovsky, near Russian capital.

The procurement contract stipulated the delivery of three Su-27 SKM and three Su-30MK2 to the Indonesian Air Force (IAF) in 2008 next year. Currently two Su-27SK single-seat and two Su-30MK twin-seat supersonic fighters strengthen IAF, supplied under a 2003 contract worth US$192 million.

The announcement figures differed from the memorandum of understanding which stated the six fighter jets ordered was worth US$355 million.

Indonesian Armed Forces Commander Air Marshal Djoko Suyanto said to Russian news agency Novosti that the country needed at least one squadron with 16 Sukhoi fighters to replace part of the outdated fleet of U.S. F-16 fighters.

A day before the MAKS-2007 announcement, MoU procurement for the six jets was revealed by Vice Director Federal Service for Military Technical Cooperation (FSMTC) Lieut-general VK Dzirkalin during a meeting to Defense Ministry Secretary General Lieut-general Sjafrie Sjamsoeddin in Moscow.

General Sjafrie Sjamsoeddin headed Indonesian delegation to the Indonesia-Rusia Commission III Meeting in the Russian capital for following-up cooperation commitments which was signed by the two head of states Dec.1, 2006. One of the commitment, Russia agreed loaning US1 billion to Indonesia for procuring Russian-made arms to be supplied between year 2007-2010.

Indonesian decided to use the loan for financing 10 MI-17-V5 and five MI-35P helicopters for the Army, two Kilo Class diesel submarines and 20 BMP-3F armored vehicles for the Navy and six avionic packages and munitions for Indonesian Air Force Sukhoi fighters.

The Russian government 15 years period loan excluded the acquisition for the six Sukhoi jets. The interest rate is 5.3 percent per year and a grace period of five years.

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Efforts to Retrieve Black Box from the Sea
American seabed salvage company, Phoenix International vessel recovery "Eas" with 16 crews and equipped with a mini submarine arrived Aug. 23 at the Makassar port of South Sulawesi in effort of retrieving AdamAir's Boeing 737 black boxes from the bottom of the sea.

The ill-fated aircraft disappeared into the sea off the coast of Majene, South Sulawesi in January this year, killing all 102 passengers on board. Wreckages of the plane were picked up from the sea but none of the victims were ever found. The plane's flight data recorders (black boxes) signal was detected by a U.S. Navy ship at a depth of 1,700 meters and believed it is still around the same location as it was in January should it is not swept away by sediment and strong currents

Delay of retrieving the flight data recorders was due to disagreements of who should pay the recovery operation costing up to US$6 million.

The mini submarine can dive to a dept of 6,000 meter (4 miles) and in one of  "Eas" mission, has successful retrieve an Australian helicopter from a dept of 2,700 meter.
 National Transportation Safety Commission (KNKT) chairman, Tatang Kurniadi said, the state would be responsible for the retrieving cost.  

 



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