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Tag: Sriwijaya

  • Nam Air to lure millennials with boutique airline

    Nam Air to lure millennials with boutique airline

    Nam Air, a subsidiary of Sriwijaya Group, has announced a plan to apply the boutique airline concept, which mainly focuses on lifestyle branding.

    The carrier aims to make itself more appealing for customers of the millennial generation by delivering what it refers to as a “unique concept that is more masculine”.

    Nam Air director Asa Perkasa said passengers would experience the new concept even prior to their departure, and it would continue until their arrival at an airport. “There will be a number of changes, starting from our style to our products,” said Asa in an official statement. “But it will still have an Indonesian touch.”

    Asa described millennials as a promising target group, as they made up a large portion of the market and medium-service airlines were challenged to cater to their needs.

    Entering its fifth year of operation, Nam Air plans to change its internal operations as well. “We plan to apply the millennial lifestyle to our internal work pattern, from our outfits and offices to our business processes,” said Asa. “We’ll provide training for all of our employees to keep up with market trends.”

  • Airline Sriwijaya Air offering Initial Public Offerings (IPO) in Indonesia

    Airline Sriwijaya Air offering Initial Public Offerings (IPO) in Indonesia

    Currently, Sriwijaya Air serves 46 domestic routes as well as seven international routes in the Asia Pacific with 51 narrow-body Boeing jets. With the larger fleet (after additional airplanes are purchased), the airline wants to add several domestic and regional routes as well as one to Jeddah (Saudi Arabia).

    Chandra Lie did not inform how much the company expects to raise from the initial public offering on the Indonesia Stock Exchange (IDX). In February 2011 Indonesia’s national flagship carrier Garuda Indonesia conducted an IPO on the IDX in which it raised IDR 3.3 trillion (approx. USD $252 million) by selling a 28 percent stake.

    Sriwijaya Air, founded by the brothers Chandra Lie and Hendry Lie in 2003, is Indonesia’s third-largest airline, controlling about ten percent of the domestic air passenger market. It currently carries about 800,000 passengers per month. The airline will move its administration and operational activities to the Cengkareng Business City complex from its current base at the Soekarno Hatta International Airport.

    The aviation industry in the Asia-Pacific region remains among the world’s fastest growing regions in terms of air passengers. Recently, the Indonesia National Air Carriers Association (INACA) says, whereas worldwide the number of air passengers is growing at a pace of nearly 7 percent (y/y), Indonesia’s air passenger growth is estimated at around 15 percent (y/y) in 2016.

    Number of Air Passengers in Indonesia 2011 – 2015:

    2011 2012 2013 2014 2015
    Air Passengers
    (in million)
    62.4 66.4 68.6 72.6 82.4

    Source: BPS