The domestic airline industry is becoming more competitive with
PT Eka Sari Lorena Airlines (Lorena Air) soon to enter the market hit hard by increasing fuel prices. Lorena Air, which is a subsidiary of transportation company Lorena Group, is scheduled to fly its first two Boeing 737-300 aircraft on June 6. The company will serve the Jakarta-Surabaya route four times a day. On June 12, the company will start serving Palembang and Pekanbaru twice a day according to a Business News report.
“Indonesia has a large population and people still need to travel. There is always opportunity to build a successful (airline) business here,” Lorena Air CEO Eka Sari Lorena Surbakti said.
“Demand for air transportation services for these routes is still high,” said Eka at the launch of Lorena Air’s ticket sales.
“The company will develop integrated transportation services,” she said.
“We offer what is called an ‘air to door’ service, where passengers can continue to travel to their destination after stepping off our plane by using our buses.”
Lorena Group is one of the country’s most well-known bus operators.
Lorena will compete head-on with national carrier Garuda Indonesia Airways. That’s the reason why the company will offer lower prices for the same services offered by Garuda, Eka said.
Lorena Air has targeted to carry 1.5 million passengers this year, focusing on the premium market.
The company will commence operations with two carriers, but will procure four more Boeing 737-300 aircraft later this year. It was supposed to fly last year, but failed to secure the necessary carriers.
CFO Michael Madrigal said the company, which now employs around 120 staff, invested over US$5 million excluding aircraft lease costs.
According to Lorena Air’s website, it has spent $30 million for the two Boeing 737-300 aircraft.
There are 16 domestic airlines serving domestic routes currently in the country.