B737-800NG aircraft are to be among the new additions to the Garuda fleet in the coming years
Air passenger traffic in Indonesia is set to soar by 15% next year owing to growth in the domestic economy and increased airline capacity in the country. According to the Transportation Ministry there were 60 million domestic air passengers this year and officials are confident of 15% growth over the next twelve months.
This growth will be driven by three key factors. Insulated from the impact of global economic uncertainty, domestic demand for air travel is set to grow as the Indonesian economy expands, driven by domestic consumption and investment.
According to the Jakarta Post, new carriers are also expected to begin operations next year, increasing the flight services available within the country and the region. Two full service airlines, Pacific Royale and Lion Air subsidiary, Space Air, are scheduled to begin domestic operations next year, subject to regulatory approval. Low cost carrier, Mandala Airlines, is also to recommence operations when it fulfils regulatory requirements, following renewed investment this year.
Existing carriers are also expanding fleet sizes and capacity on domestic and regional routes. Garuda is set to expand its fleet from 87 to 153 aircraft by 2015, budget airline Citilink is set to grow its fleet from 10 to 15 next year, and Lion Air is also taking an additional 12 planes through 2012.