News that budget long haul operator Air Asia X plans to set up a hub in Bali signals significant change is coming to airline operations, not just in Indonesia but in the wider region.
A Centre for Asia Pacific Aviation (CAPA) analysis of Air Asia’s Bali strategy "has profound implications for Australia’s carriers", according to aviation commentator, Ben Sandilands.
He believes AirAsia, the group, is doing what Jetstar was clearly intending to do for Qantas, by setting up offshore ventures to fly to and from Australia from a lower cost base, "rather than serve the market by flying from a higher cost base in Australia and then coming back".
Sandilands added: "If AirAsia X and AirAsia successfully grow Bali into a longer and shorter haul hub, with high linkages to Australian cities, Qantas/Jetstar and Virgin Australia will be forced to advance or retreat.
"Standing still will not be an option."
Still in Indonesia, the state-owned energy company Pertamina has said it will only supply jet fuel to debt-laden PT Merpati Nusantara Airlines if it pays in cash, throwing into question the airline’s ability to remain operational.
Merpati has total debt of US$492.2 million, owed to Pertamina as well as other companies, including airport operators, local media reported late last year.
