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1 Hubungi Kami Indonesian Airline Industry has found its prosperity era in the last seven years ( ). The peak occurred in With population of more than 250 million people and medium class society which grows rapidly have made the need and services of flight services in entire Indonesia to keep on rising. Based on a survey of CDMI that total passengers in 2011 reached 68 million people and in 2016 total passengers had reached 100 million people and predicted to achieve 105 million people in Although the potential of total passengers keeps on increasing, some national airline companies have failed and finally closed down. In 2013, PT Metro Batavia (Batavia Air) had to cease its operation after being stated to be bankrupted by commercial court in PT Merpati Nusantara had to take bitter pill by ceasing its operation in December PT Mandala Airlines (Mandala Air) was stated to cease its operation as of 1 July The cause of their failure was the continuous loss and finally bankruptcy. The competition rate among airline companies to seize domestic markets is very tight. In 2014, domestic aviation was still controlled by Lion Air but since 2015 until present Garuda Indonesia has taken over it. In 2016, total domestic flight departure reached 764,156 times, some 186,482 times (24.4%) of Garuda Indonesia followed by Lion Air of 180,581 times (23.6%), Wings Air of 86,313 times (11.3%), Citilink Indonesia of 78,935 times (10.3%) and Batik Air as well as Sriwijaya Air. Violent competition also occurs in international destination flights. Until 2015 AirAsia led it with the most international destination flights but in 2016 its position had been moved aside by Garuda Indonesia. In 2016, total frequency of international flight departure reached 71,487 flight times, 27,577 times (38.6%) were controlled by Garuda Indonesia, followed by AirAsia of 22,209 times (31.1%), Lion Air of 9,212 times (12.9%) and other airline companies. Viewing great potential of aviation business in Indonesia and tight competition among airline companies, PT. CDMI Consulting is attracted to perform a deeper research on this industry and finally succeeded in publishing the output in a study book with the title of Study on Business Potential and Players of AIRLINE Industry in Indonesia, This book is only available in PT. CDMI Consulting and it can be ordered directly to our marketing division with Mrs. Tina by phones (6221) , , , or Fax (6221) or at a price of Rp. 9,000,000.- for Indonesian Edition, Rp. 9,500,000.- for English Edition and US$ 750 for overseas price. Having submitted this offer, we thank you for your cooperation and look forward to hearing your response promptly. Cordially yours, P.T. CDMI Muslim M. Amin... P.T. CENTRAL DATA MEDIATAMA INDONESIA AGP Building, 2 nd Floor Jl. Pegangsaan Timur No. 1 Cikini Jakarta 10320, Indonesia Please send us.. copy(ies) our creative data for your partners Phones (021) , Fax (021) Website Study on Business Potential and Players of AIRLINE Industry in Indonesia, Name (Mr/Mrs/Ms) Position Name of Company Address Telephone/Fax Date / / Signature Please, tick Price Rp. 9,000,000.- (Indonesian Edition) / Rp. 9,500,000.- (English Edition) US$ 750 Overseas Price Telegraphic Transfer (TT) Invoice us Indonesian Edition English Edition Note Overseas is added delivery cost

2 LIST OF CONTENTS LIST OF CONTENTS... i LIST OF TABLES... vii 1. INTRODUCTION Background Scope of Study Methodology of Research INDONESIAN ECONOMIC REVIEW Growth of Indonesian Economy Contribution of Air Transportation towards Transportation & Warehousing Sectors and GDP Position of Airline Industry in National Industrial Structure Development of Foreign Capital Investment (PMA) and Domestic Capital Investment (PMDN) Prospect of Indonesian Economy GENERAL ILLUSTRATION OF AIRLINE INDUSTRY History of Indonesian Airline Industry Indonesian Aerospace Company (IPTN) Airport by Usage, Hierarchy and Classification List of Aircraft Owners PERFORMANCE OF AIRPORT Production of Domestic Destination Flight Movement Flight Movement Passenger Movement Goods Movement Baggage Movement Post/Package Movement Production of Overseas Destination Flight Movement Flight Movement Passenger Movement Goods Movement Baggage Movement Post/Package Movement i.

3 4.3. Production of Flight Movement by Airport Domestic Flight Overseas Flight Production of Flight Passenger Movement by Airport Domestic Flight Overseas Flight Production of Flight Baggage Movement by Airport Domestic Flight Overseas Flight Produksi Flight Goods Movement by Airport Domestic Flight Overseas Flight Production of Flight Post Movement by Airport Domestic Flight Overseas Flight Production of Hajj Passengers in 12 Airports PERFOMANCE OF AIRLINE COMPANY Production Performance of Scheduled Airline Company Domestic Destination Flight Overseas Destination Flight Performance of Scheduled Airline Company PT Garuda Indonesia Tbk PT Merpati Nusantara Airlines PT Lion Mentari Airlines PT Indonesia AirAsia PT Tigerair Mandala (PT Mandala Airlines) PT Travel Express Aviation Services PT Pelita Air Service PT Metro Batavia PT Sriwijaya Air PT Wings Abadi Airlines PT Trigana Air Service PT Kalstar Aviation PT Indonesia Transport & Infrastructure Tbk (PT Indonesia Air Transport Tbk) PT Travira Air PT Aviastar Mandiri ii.

4 PT Transnusa Aviation Mandiri PT Asi Pudjiastuti Aviation PT Pacific Royale Airways PT Citilink Indonesia PT Sky Aviation PT Batik Air PT Cardig Air PT Indonesia Air Asia Extra PT My Indo Airlines PT Nam Air PT Tri MG Intra Asia Airlines AIRPLANE TYPES AND AIR OPERATION CERTIFICATES Development of Total Airplanes by Air Operator Certificate, AOC AOC AOC 137, OC 91, PSC 141 and FASI Development of Total Airplanes with AOC 121 Certificates by Airplane Types, Development of Total Airplanes with AOC 135 Certificates by Airplane Types, Development of Total Airplanes with AOC 137, OC 91, PSC 141 and FASI Certificates by Airplane Types, AIRLINE COMPANIES BY TYPES AND AIR OPERATOR CERTIFICATES AOC PT Garuda Indonesia Tbk PT Merpati Nusantara Airlines PT Tigerair Mandala PT Trigana Air Services PT Metro Batavia *) PT Pelita Air Service PT Indonesia Airasia PT Lion Mentari Airlines PT Wings Abadi Airlines PT Cardig Air PT Tri-MG Intra Asia Airlines PT Manunggal Air Service iii.

5 PT Nusantara Air Charter PT Indonesia Transports and Infrastructure PT Sriwijaya Air PT Kalstar Aviation PT Travel Express Aviation Service PT Asialink Cargo Airlines PT Republic Express Airlines PT Air Maleo PT Jayawijaya Dirgantara PT Pacific Royale Airways Indonesia *) PT Citilink Indonesia PT Transnusa Aviation Mandiri PT Batik Air PT Indonesia Air Asia Extra PT Nam Air PT My Indo Airlines PT Aviastar Mandiri AOC PT Airfast Indonesia PT Sayap Garuda Indah PT Survei Udara Penas (Persero) PT Asian One Air PT Travira Air PT Derazona Air Service PT National Utility Helicopters PT Alfa Trans Dirgantara PT Deraya Air Taxi PT Sabang Merauke Raya Air Charter (SMAC) PT White Sky Aviation PT Gatari Air Service PT Intan Angkasa Air Service PT Air Pacific Utama PT Transwisata Prima Aviation PT Asconusa Air Transport PT Purawisata Baruna PT Penerbangan Angkasa Semesta PT Asi Pudjiastuti Aviation PT Aviastar Mandiri iv.

6 PT Dabi Air Nusantara Balai Besar Kalibrasi Fasilitas Penerbangan PT Ekspres Transportasi Antarbenua PT Pegasus Air Services PT Eastindo PT Amur Aviation Indonesia (PT Unindo Air Charter) PT Nusantara Buana Air PT Hevilift Aviation Indonesia PT Jhonlin Air Transport PT Sky Aviation PT Enggang Air Service PT Surya Air PT Ersa Eastern Aviation PT Matthew Air Nusantara PT Marta Buana Abadi (Dmonim Air) PT Angkasa Super Services PT Komala Indonesia PT Elang Lintas Indonesia PT Elang Nusantara Air PT AMA PT Air Born Indonesia PT Alda Trans Papua PT Spirit Avia Sentosa PT Tri-MG Intra Asia PT Weststar Aviation Indonesia AOC 137, OC 91, PSC 141, FASI MARKET SEGMENT OF AVIATION By Total Flight Departure Total Domestic and International Flight Domestic Flights International Flights By Total Transported Passengers Total Domestic and Foreign Flight Domestic Flight International Flight v.

7 8.3. By Total Transported Goods Total Domestic and International Flight Domestic Flight International Flight GOVERNMENT POLICY Policy on Development and Investment Policy on Issuing License of Airline Company Policy on Construction and Expansion of Airports Ministerial Regulation (PM) 90 / Ministerial Regulation (PM) 87 / Ministerial Regulation (PM) 59 / Ministerial Regulation (PM) 61 / Policy on Air Transit Policy for Increasing Total Tourists PROJECTION AND MARKET PROSPECT Projection of Aviation Movement Production Domestic Flight International Flight Projection of Scheduled Commercial Airline Production Domestic Flight International Flight Business Prospect CDMI vi.

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