Indonesian Government Wants to Turn Terminal 2 in Jakarta into a Low Cost Airlines Terminal

Indonesia, air transport, low cost airlines, airport

Jakarta Soekarno Hatta airport

According to the Jakarta Post, Terminal 2 at Jakarta Soekarno Hatta International Airport could be turned into a dedicated Low Cost Air Terminal to attract more Low Cost Airlines.

The Tourism Ministry is working hard to achieve its target of 20 million tourist arrivals by 2020, including by proposing the establishment of low-cost carrier (LCC) terminals in airports across the country.

Tourism Minister Arief Yahya declared to the Jakarta Post in Jakarta on Sunday that he had received approval from President Joko Widodo to turn Soekarno-Hatta International Airport’s Terminal 2 into a low-cost carrier terminal (LCCT).

He said he had met with state-owned airport operator PT Angkasa Pura II (AP II) president director Muhammad Awaluddin to discuss the issue.

“We agree that Terminal 2 is the best available terminal’s option to be converted into a proper LCCT,” he said as reported by various local newspapers.

Previously, Awaluddin also said that an airport in Banyuwangi, East Java, would also focus on serving low-cost carriers.

The arrival of foreign tourists to Indonesian airports grows 13 percent annually on average, said Arief, adding that the number of visitors who arrived with full-service carriers (FSC) grew 7 percent, while those using low-cost carriers grew about 55 percent annually.

“The establishment of an LCC terminal is important because the LCC passenger growth is above 20 percent – in line with the government’s tourism target of 21 percent annually. Meanwhile, the passengers of flag carrier Garuda Indonesia’s FSC only grew less than 5 percent,” he said.

With the availability of LCC terminals, low-cost carriers can cut operational costs by up to 50 percent, while traffic is estimated to double, he said, adding that about 45 LCCs could potentially open flights if Indonesia had terminals for them.

(Sources: bbn-The Jakarta Post)