Tuesday, 10 April 2012
Lion Air Cargo: Focus On Strengthening Network And Expansion To International Market
Data shows that the national flag carrier record in cargo volume took place in 2010. The data shows that during the year, total air cargo volume handled by flag carriers reached 749,203 tons, up 91.3% year on year, 391,667 tons in 2009. And up to October 2011, the cargo volume handled by INACA (Indonesia National Air Carriers Association) members reached 480,479 ton. Such potency has triggered Lion Air to set up own cargo division, though up to now, the cargo service is still combined with passenger crafts. As mostly practiced by airlines worldwide, cargo service is only complementary of passenger service. But, Lion Air wants to change it. "This due to the fact that cargo service has its own characteristics and has significant role in airline industry," Ari KH. Pane, Senior Cargo Manager Lion Air, told his view relating air cargo business to Cargo Times. Lion Air understands that the cargo division will be set up if the market wants it and if a commercial system at a certain area is probable to take this step. Ari underlines that if infrastructures and facilities are ready, Lion Air will provide special cargo freighter. The center of global economy activity has been moving to Asia, according to Ari, as most of the world population are contributed by Asian countries including China, India, Indonesia. There must be high economy activities within these countries, including air cargo industry. Lion Air Cargo Division will enter both regional and international market as the region economic growth is promising. Up to October 2011, total international air cargo from Indonesia handled by both national and foreign carriers reached 61,500 tons. "This is a potency for cargo development in Indonesia. In Lion Air, we have just served only 30% of total customer needs. There is still a big market that should be developed," Ari said, adding that Lion Cargo Division has shown a significant improvement. Lion Cargo Division is the first who applies "Comprehensive e-Cargo" and goods identity application through Barcode. But Ari affirmed that Lion Air has not specifically categorized all commodities recently handled, including commodities from Jakarta to West and East Indonesia. In responding Cargo Times question relating Lion Air cargo growth in 2012, Ari said: "The growth will of course be higher than previous years. The economy will continue to grow up, and I think this will also affect to the air cargo positive growth." However, he further said, the market share will still be lower compared to some foreign players. He said that foreign players are very competitive since they firstly conducted a deep market analysis before entering the market of a certain country and with their extensive network they will be easily the dominate market share. "And Lion Air will try to follow their method. And in the near future, we will focus to Bandung. Why? Because this area is very potential," Ari explained it as one of the most potential cargo center outside Jakarta. He said Cargo Gateway Center in Bandung has run Road Feeder Service (RFS). Moreover, Bandung is an industrial city that continues to distribute its products to overall cities in Indonesia. Lion Air center in Bandung is located in Jl. Seokarno Hatta 447 with total area reaching 400 m2. This center has also run cooperation with some well known couriers. Bandung is now center for industries of garment, fashion, footwear, leather craft, handycraft, telecommunication, some niche market distro retail and unique live animal that attracted both domestic and international market.(eko/mar)
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