Throughout 2018 the number of domestic aviation passengers is predicted to grow between 9-11%. The number of international aviation passengers will also increase but not by so much.
According to Juliandra Nurtjahjo, CEO of Citilink Indonesia, political stability will also affect the aviation business climate. Economic growth and the 15 – 59 years population age group also offer opportunities. "In Southeast Asia, the growth of regional airlines has increased. The number of aircraft in the biggest indicator compared to other regions”, he said. The Southeast Asian market will grow and Citilink will add international routes.
Citilink will open 2 or 3 new international or regional routes. Jakarta, Surabaya and Makassar will become maintenance and repair hubs. Additional repair hubs will be considered such as in Sumatra or Kalimantan. "We have to restructure the route with Garuda Indonesia. The growth of airports in Indonesia will also provide new business opportunities and is a factor in opening this new route”, he added.
Citilink has transformed itself by adjusting its market segment from conventional LCC to premium LCC with e-commerce services. In addition to route expansion, business expansion has benefitted by a breakthrough in additional revenue sources, not only from ticket sales but also business process improvements. "Additional non-ticket revenue such as on-board food and services is expected to increase corporate earnings. Cargo revenue will also be increased”, explained Juliandra.
Citilink also collaborates strategically with JD.ID to deliver a unique experience: shopping online in flight. Various offers are available on the JD.ID website ranging from pre-flight, inflight, to post-flight. Customers will also be able to redeem the JD Points they have with Supergreen Garuda Miles.
In 2018, projected top-line revenue is expected to grow 25-30%. For business growth in 2018, Citilink aims to capture 15% market share with about 16 million passengers. The airline has increased the production targets in its 2018 business plan but will not increase the number of aircraft. This additional output will be achieved