Air transportation industry in Indonesia has started to recover in year 2000 after suffering from the monetary crisis in 1997. The number of passenger in domestic air transport shows a very significant growth. The average annual passenger growth up to year 2003 is 32% or almost triple than the growth in just before the crisis. The high growth of domestic air transportation is the result of the goverment deregulation, encouraging more private sector to participate in the indusutry, and the introduction of Low Cost Carrier (LCC) approach. This LCC is made possible with the use of advance information technology.
During the period between 2004-2010, domestic air transportation still shows a high growth rate in passenger carried (12,7%). This figure is believed higher than the growth rate of domestic air transportation in China wich according to Boeing, has the average of around 11% while the wolrd average growth rate is slightly below 5%.
The chart above shows that the growth in passenger carried have increased over the year. Declining in total number of passenger carried occurred in 1998 and 1999, this is due to the crisis that hit Indonesia. In 1999 Indonesia still recovering from the crisis, however following that year the growth in passengers carried is increasing every year up until now. The chart above shows the forecast of growth in passenger carried with three possible growth rate, i.e., 3%, 5% and 10%.. By considering the GDP rate of growth for the year 2011 which is about 6.5%, and the average rate of growth domestic passenger which is about 16.8%, therefore the prediction analysis are carried out based on growth rate of the worst scenario (3%), maintaining GDP growth rate of aproximetly 5% and the optimistic growth rate scenerio of 10%.
All statement contained in this Market Outlook are statements of opinion from CSE Aviation experts and are not to be taken as implying statements of representation of fact. Every effort has been made to ensure the correctness of the information contained in this Market Outlook, it can only reflect the position at the time of our assessment and its accuracy cannot be guaranteed. CSE Aviation and its employees bear no responsibility or liability for any inaccuracy.
