Chris whittle aviation sector and open skies june 14 2011


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  • Strong fundamentals of demand exist: geography + population growth + positive macroeconomic indicators + increased FDI = increasing propensity to fly; Untapped potential in domestic, international passenger and cargo markets; Constrained in some markets by existing Air Service Agreements.
  • to include more gateways and to achieve greater synergy with the strategy for development focussed on six Economic Corridors;
  • Item 1: MILT (Japan) multi-airport study
  • Chris whittle aviation sector and open skies june 14 2011

    1. 1. <ul><li>Aviation Sector and Open Skies </li></ul><ul><li>Chris Whittle </li></ul><ul><li>IndII Wrap-up Conference </li></ul><ul><li>14 th June 2011 </li></ul>
    2. 2. Aceh to Jayapura 5,000km 5 hrs 40 min Los Angeles to New York 3,950km 4 hrs 30 min London to Jeddah 4,730km 5 hrs 25 min
    3. 3. Major Player On World Aviation Stage <ul><li>World’s 17 th largest economy with rapidly growing middle class </li></ul><ul><li>Strong demand growth </li></ul><ul><li>Jakarta largest and fastest growing airport in ASEAN </li></ul><ul><li>Indonesian airlines increasing fleets </li></ul><ul><li>New capacity planned at main international airports </li></ul>
    4. 4. Demand Growth + Forecast (Indonesia)
    5. 5. Growth of Jakarta
    6. 6. Aircraft Orders
    7. 7. New Airport Capacity <ul><li>Jakarta Airport: Masterplan in progress </li></ul><ul><li>Medan: new airport </li></ul><ul><li>Bali: new international passenger terminal </li></ul><ul><li>Balikpapan: new international passenger terminal </li></ul>
    8. 8. Implementation of ASEAN Open Skies Policy <ul><li>Goal </li></ul><ul><ul><li>A strategy for implementation of regional (ASEAN) Open Sky policy in 2015 (planned date) </li></ul></ul><ul><li>Objectives </li></ul><ul><ul><li>Accommodate ASEAN Open Sky policy in national aviation law </li></ul></ul><ul><ul><li>Prepare national aviation industry for regional competition </li></ul></ul><ul><ul><li>Assess the benefits of ASEAN Open Sky policy for Indonesia </li></ul></ul><ul><li>Deliverables </li></ul><ul><ul><li>Road map for the development and implementation of the ASEAN Open Sky Policy in Indonesia in 2015 (planned date) </li></ul></ul><ul><ul><li>Detail steps to be taken by the “implementers”, including the government, carriers and airport operators </li></ul></ul>
    9. 9. <ul><li>Description of Activity Components </li></ul><ul><li>Interdependence of the tasks </li></ul>
    10. 10. Open Skies Benefits <ul><li>Benefits significantly outweigh costs: </li></ul><ul><ul><li>Additional 16.3m international passengers; 99,000 aircraft movements; 291,000 tonnes of air cargo in 2025 </li></ul></ul><ul><ul><li>Baseline impact (2010): 243,000 jobs and GDP IDR 33.7 trillion </li></ul></ul><ul><ul><li>2025: 505,000 jobs and IDR and GDP 117.7 trillion </li></ul></ul><ul><ul><li>Positive net flow of costs and benefits to Indonesian users - Net Present Value of IDR 21.9 trillion and Benefit Cost Ratio of 5.4 </li></ul></ul><ul><li>Most benefits accrue to Jakarta and other larger airports </li></ul><ul><li>Benefits could be greater by extending scope of Open Skies </li></ul><ul><li>Strong case for a more liberal approach towards the development of air services with other world regions. </li></ul>
    11. 11. Other Aviation Projects <ul><li>Indonesia Air Traffic Management Masterplan </li></ul><ul><ul><li>A strategic road map for development of future Air Traffic Management requirements </li></ul></ul><ul><li>Bali Airport Development options </li></ul><ul><ul><li>Opportunities can be realised in short /medium term from optimumuse of existing terminal and runway infrastructure. </li></ul></ul>
    12. 12. Opportunities (1) <ul><li>Implementation of Open Skies </li></ul><ul><li>Infrastructure bottlenecks: </li></ul><ul><ul><li>National Airports Masterplan </li></ul></ul><ul><ul><li>Optimise existing terminal and airside infrastructure (Bali example) </li></ul></ul><ul><ul><li>Upgrade surface access to airports </li></ul></ul><ul><li>Development of human resources </li></ul><ul><li>Align air transport with development of economic corridors </li></ul>
    13. 13. Opportunities (2) <ul><li>Reduce impact of peripherality </li></ul><ul><li>Airline compliance and conformity </li></ul>