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Budget carrier Tigerair Mandala, a joint venture between Singapore and Indonesia, will cut a large number of frequencies due to the weak Rupiah and surging fuel costs.
JAKARTA – Like many other carriers in Indonesia, Tigerair Mandala is currently bracing hard times. The airline decided already late last year to slow down its expansion as it is facing –like other airlines in Indonesia tough market conditions: a declining Rupiah –down by over 25% to the dollar since last year- rising costs at airports and a continuous increase in fuel prices. However prices remain relatively low as competition remains heavy.
Tigerair Mandala currently has a fleet of nine Airbus A320 and will add another three aircraft this year. In fact, the growth of the airline has been delayed by almost a year. Originally, Tigerair Mandala was due to celebrate its 12th aircraft at the end of 2013 and add six more aircraft this year.
Tigerair Mandala currently operates six domestic and 12 international routes. But it just announced last week to reduce its flights on 11 of its 20 routes, with the definitive closure of Jakarta-Surabaya –served by a daily frequency only- following the reduction of Jakarta-Medan from two to one daily service. Some months ago two other domestic routes, Jakarta-Padang and Bali-Surabaya, were already cut.
The airline will also reduce Jakarta-Hong Kong by one frequency from five to four flights/week and between Jakarta and Pekanbaru, from twice to one daily frequency. Tigerair Mandala international network includes Bangkok, Hong Kong, Kuala Lumpur and Singapore out of Jakarta. The airline is now working at offering flights between Jakarta and the Philippines in cooperation with Cebu Pacific, Tiger new alliance partner. Tigerair Mandala will offer connecting flights from Singapore to Manila and Boracay in the Philippines, as well as other cities served under Cebu Pacific’s network, according to Lucas Suryanata, Tigerair Mandala’s public relations manager.
Luc Citrinot a French national is a freelance journalist and consultant in tourism and air transport with over 20 years experience. Based in Paris and Bangkok, he works for various travel and air transport trade publications in Europe and Asia.
