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NOVEMBER 2015

Week 48

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Citilink mulls A321 as Indonesia rejects $1.2 billion Lion Air airport plan

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November 27th 2015

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Indonesia has tightened security at airports across the country because of an increased terrorist threat, the Ministry of Transportation (MOT) said Wednesday. Read More » "The alert level has been upgraded from green to yellow because of the heightened threat to civil aviation," ministry spokesman Julius Barata said.

Meanwhile, Garuda Indonesia budget subsidiary, Citilink, is considering upgauging its fleet of A320s and B737s to include larger aircraft such as the A321, its chief, Albert Burhan, said at the CAPA Asia Aviation Summit.

“Because of slot constraints, we need to be able to increase capacity. One of the options is by way of bigger aircraft, but we want to stick to one type,” Burhan said, adding the carrier was weighing up whether the A321ceo or neo was a better fit. Although the ceo variant would be available sooner, the neo would also be available as a long-range variant, which could prove useful in Citilink's long-term network expansion plans, Burhan offered.

The Lion Air Group was jolted by the MOT rejection of its proposal to create a four-runway airport in Banten province, 70 miles south of Jakarta, to ease congestion at significantly over-capacity Soekarno-Hatta. "This decision is final. In principle, the proposal can’t be accepted,” MOT spokesperson, Novie Riyanto said. The proposed site’s proximity to the nearby airports of Budiarto, Rumpin, Soekarno-Hatta, and Halim would impinge on existing commercial air corridors, as well as the Indonesian Aviation Institute's airspace, the MOT said.

The $1.2 billion project, which was planned to accommodate widebodies including the A380 and up to 100 million passengers a year along with a dedicated cargo facility, was being undertaken by Rusdi Kirana’s Lion Group and developer, PT Maja Raya Indah Semesta (MRIS).

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