Russian choppers still Indonesia's main choice: Official

JAKARTA (Antara): Mi-17 Russian helicopters are still the main choice of the Indonesian government for modernizing its military carriers, as it has received an offer of a US$1 billion loan from the country, an official said.

Previously, Defense Minister Juwono Sudarsono also said that Indonesia was considering the purchase of Chinook helicopters from U.S. aircraft manufacturer Boeing, after meeting with Boeing deputy president Stanley Roth in Jakarta.

"We still prioritize Mi-17 Russian helicopters," said the secretary-general of the Defense Ministry, Sjafrie Sjamsoeddin, after chairing a meeting in his office Wednesday.

Russia previously offered Indonesia a $1 billion loan for modernizing its military equipment, including warships and helicopters.

He said the Defense Ministry would discuss the Russian offer with several relevant agencies, including the Finance Ministry, the Indonesian Military and the National Development PlanningAgency.

"If the loan is approved by the government, we will use $200 million to buy Mi-17 helicopters," he was quoted by Antara as saying.

Sjafrie said the government had not closed the possibility of buying the U.S helicopters, saying no decision on the military purchase had been made. (**)

RI considers buying Chinook choppers

JAKARTA (Antara): Indonesia is considering the purchase of Chinook helicopters from U.S. aircraft manufacturer Boeing to support humanitarian and other nonmilitary activities in the country, Defense Minister Juwono Sudarsono said Thursday.

He said the government was considering a deal because Chinooks were an effective means of transportation for emergency situations.

"We will study the (Boeing) offer ... such helicopters are proven effective for emergency services, like the tsunami in Aceh," Juwono said after meeting with Boeing vice president Stanley Roth in Jakarta on Thursday.

The minister also said Chinooks were effective military transports because they could carry large numbers of troops, medicine as well as small military vehicles. In the future, he added, Chinooks may also be used to modernize the country's defense facilities, with particular attention to be given to the Air Force and Navy in the next five to 10 years.

The ministry's Director General for Planning Affairs, Yuwendi, said the U.S. company had made an offer to the government days after the tsunami hit Aceh and North Sumatra on Dec. 26, 2004.

"They offered the choppers to support humanitarian operations for tsunami victims. But it was impossible to make a quick response in such a situation. Now, we will reassess the offer," he was quoted by Antara as saying.

Chinooks are used primarily for trooping and for load carrying and can carry up to 54 troops or 10 tonnes of freight. The cabin is enough to accommodate two Land Rovers. Secondary roles includesearch and rescue and casualty evacuation. The crew consists of either two pilots, or a pilot and navigator, and two air loadmasters. (**)

Pelita Air to add aircraft, revive scheduled services

The Jakarta Post, Jakarta

Pelita Air Service, which mostly serves the charter aircraft market, plans to add between 10 and 20 new planes to its fleet this year to meet growing demand.

"We are aiming to operate both charter and regular flights for high-end and business-class passengers," said the firm's president, Samudra Sukardi.

Samudra told The Jakarta Post on Thursday that the company needed to operate at least 100 aircraft to be profitable.

Pelita Air, which is owned by state-owned oil company Pertamina, has 42 aircraft in its fleet consisting of 21 helicopters and 21 fixed-wing aircraft. However, it currently operates only 35 of the aircraft, while the rest are grounded.

The company focuses on charter services, with a captive market in the form of oil and mining companies, and enjoys a 45 percent market share. It also serves provides other services, depending on the clients, such as umroh pilgrimages and transporting workers.

"We would like to grow as big as possible," Samudra said.

Samudra noted that Pelita, which was established in 1970 to serve customers working for oil companies, started to fly scheduled services four years ago following the emergence of new low-cost carriers in early 2000.

However, he said that Pelita's scheduled services had been temporarily discontinued following the fuel price hikes late last year.

He said that Pelita intended to start up its scheduled services again to such destinations as Medan, Balikpapan and Singapore.

Samudra, appointed Pelita's president four months ago, said there were some obstacles that the company had to overcome, such as the company's lack of profitability, aging fleet, low motivation among its staff resources and inadequate cash flow.

"We are trying to turn this dire situation around," he said. "Our strategy is to secure our main business -- charter flights -- and then create a new businesses, such as feeder and cargo services."

Samudra, who previously worked for Garuda for 29 years, said that with the expansion plan, Pelita could utilize its surplus staff to work on the new businesses. The airline currently employs about 1,000 people.

To lay off Pelita's employees would be an unpopular choice, he noted. Samudra said, "Pelita is aiming to opt for the other way, which is to expand our business by redeveloping regular routes and creating new businesses."

Samudra noted that in order for the firm to survive, it either had to grow bigger -- targeting a specific market segment -- or offer low ticket prices to its customers.

"For example, American Airlines can survive because of its big size and Southwest Airlines because of cheap tickets," he said, adding that an airline company that was neither big nor small could not operate efficiently. (03)