Monday, February 06, 2006

Qantas gets green light to buy AdamAir's shares

Monday, February 6, 2006

The Jakarta Post, Jakarta

Qantas Airline, one of major airlines in the Asia Pacific, appears unlikely to face any problem in acquiring a 20 percent stake in growing local airline company AdamAir.

Minister of Transportation Hatta Rajasa said Saturday that the government welcomed the Australian airline's plan to buy a part of the locally owned AdamAir.

He, however, warned that the acquisition of AdamAir's shares should be in line with the Cabotage law in which a foreign airline should be allowed only to buy up to 49 percent in a local airline company.

"There will no problem for Qantas to buy Adam's shares and become its strategic partner as long as it complies with the existing regulation," the minister was quoted as saying by Antara.

He said that under the Cabotage law, foreign airlines were not allowed to become a majority shareholder in a local airline company. "They may only own up to 49 percent of the shares," he added.

AdamAir said Friday it would sell 20 percent of its shares to Qantas. "The Australian company actually offered to buy 30 percent of the shares but we are only prepared to sell 20 percent because another 20 percent will be sold during Adam Air's initial public offering (IPO) in Singapore next year," AdamAir's chief executive officer Gunawan Suherman said Friday.

Qantas CEO Geoff Dixon visited Soekarno Hatta International Airport Friday to take a look at AdamAir's operations. He said Qantas was very much attracted to Indonesia's airline industry whose growth last year was predicted to reach more than 10 percent.

Minister Hatta Rajasa said more foreign airlines would likely enter the domestic airline industry in partnership with local airline operators within the next few years to take the advantage of the growing market in the country.

He said the entry of the foreign airlines was also needed to help local players compete globally.

Meanwhile, the Indonesian National Air Carriers Association (INACA) has demanded that the government enforce the Cabotage law, fearing that foreign airlines would damage the nation's airline industry.

According to international law on air traffic as stated under Article 1 of the Chicago Convention 1944, every country has the exclusive right to control air traffic within its control. This restriction is more popularly called Cabotage. (01)

Sunday, February 05, 2006

How does it feel to be 33?

Am I old? Am I young? It can be half empty or half full. Some say I got one year more while others say I got one year less. Suppose that I got 66 years in my life time, this year is already the middle of my life. I have 33 years more to go while last year I had 34 years to go.

Whatever.

And don't expect that I have party as I was stuck in the office uploading the website. What a way to celebrate my birthday.

Well, whether it is one year more or one year less, still plenty of things to do.

Web counter ready to record visitors

This is just a small announcement that I have put web counter from Free Counter Plus to my Blogspot blogs. The counter is free but it carries a link to an advertiser. You can generate it randomly. Well, there's no such thing as a free lunch in this cruel world. :P

The good thing about this counter is that it has a (basic) site statistics. While the design is basic, it comes in several color schemes to match your blog design.

So, for those who have not use this webcounter, have a try.

Saturday, February 04, 2006

AdamAir may sell 20 percent stake to Australia's Qantas

Saturday, February 04, 2006

The Jakarta Post, Jakarta

Locally owned regional airline AdamAir is considering selling about 20 percent of its shares to Australia's Qantas in a bid to create mutual benefits for both airlines.

"They want to buy about 30 percent of our shares, but we are only prepared to offer them 20 percent as we're planning to sell another 20 percent during an initial public offering (IPO) in Singapore next year," Adam Air chief executive officer (CEO) Gunawan Suherman was quoted by Antara as saying Friday.

He added, however, that the Qantas deal had not yet been finalized.

Qantas CEO, Geoff Dixon, and the airline's chief financial officer, Peter Gregg, visited Soekarno-Hatta Airport in Jakarta on Friday to take a closer look at AdamAir's operations.

The Australian airline, Gunawan said, had decided to make Indonesia its second hub after Australia.

"They are preparing to enter the domestic market before the Association of Southeast Asian Nations (ASEAN) liberalizes the transportation of cargo in 2008 and passengers in 2010," he said, adding that he expected the deal would benefit both companies.

Qantas, he said, would also provide training for AdamAir employees.

AdamAir, one of Indonesia's fledgling budget airlines, plans to almost triple the size of its fleet to 50 aircraft within three years to support the expansion of its domestic and international services.

The airline currently operates 20 planes, flying to 39 destinations, including Malaysia and Singapore.

"We are hoping to operate 40 planes by the end of 2006," executive vice president Dave Laksono told The Jakarta Post last week.

The airline started its domestic operations in December 2002 with Boeing 747-400 and Boeing 737-500 aircraft made between 1997 and 2000.

Qantas, which stands for Queensland and Northern Territory Aerial Services Limited, was founded in Queensland in 1920.

It is widely regarded as one of the world's leading long distance airlines and one of the strongest brands in Australia. (01)