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Batavia Air flirts with AirAsia and fails LIPPO CIKARANG - Earlier in July this year, Batavia Air and AirAsia announced that Indonesia AirAsia would obtain an almost 80 percent share in Batavia Air. This lead to questions from the government as foreign companies are not allowed to own majority stakes in Indonesian companies. While this construction via an Indonesian investor are fully legal, it was an undesirable situation.

Soon after the announcement, Batavia Air changed some of its regulations with huge impact on their operations. The time limits given for reservations was cut drastically to a maximum of two days, from six days in certain conditions. Also, the free luggage allowance was cut from 20 kilograms to 15 kilograms, which made Batavia Air much more similar with AirAsia.

All of a sudden a large number of routes were canceled, mostly with destinations in the eastern part of Indonesia. The number of flights on certain routs was also cut. The planes that became available because of this, were put to use on shorter haul flights in the western part of Indonesia. Eastern Indonesia will now have to do without Batavia Air.

Three weeks ago it was announced that the take-over by AirAsia was canceled after more complaints from the Indonesian government. What was left was a cooperation in ground operations and maybe sharing of flights later on. What followed was a message that the two would cooperate in starting a flight school.

The damage left behind is thousands of passengers that saw their flights canceled, sometimes just a few days before their departure, leaving them with little time to find a proper alternative. Processing of the refunds is smooth until now, which seems to indicate that Batavia Air is still financially healthy.

Possibly the only damaga is a blue eye, because Indonesians usually don't read the regulations that well, so with the new 15 kilogram free luggage allowance, Batavia Air will be able to earn money from those passengers that show up with 20 kilograms of luggage. Most likely that will not be cheap, after Batavia Air had the change to learn a little bit from AirAsia during their one-night stand.


Related blog entries (category 'Travel') Related blog entries (category 'Travel'):
10 September 2012 · Lion Air opens several new routes
27 June 2012 · Indonesia needs 4,000 pilots for ASEAN Open Sky
10 June 2012 · Batavia Air to fly Denpasar - Guangzhou route
11 May 2012 · Sriwijaya Air opens business class and new routes
27 March 2012 · Mandala Air to fly again from April 4, 2012
25 March 2012 · No more paperwork for Indonesians at immigration checkpoints

Related blog entries (category 'Travel') Tags: Batavia Air, AirAsia, take-over, failure


Posted in Travel @ 31 October 2012 04:38 CET by Jeroen · 'Blog' RSS feed · permalink






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