28 July 2008

Indonesia's Airlines are Banned to Fly in Europe

EU has just prolonged the ban to Indonesia's airlines to fly in Europe. EU said the main reason is low safety standards of Indonesia's Airlines (can imagine that if one fly Adam Air). But who knows the real reason? Let's try to find out.

A small talk yesterday made me do a small research especially related to tourism in Indonesia. Based on data from BPS (Biro Pusat Statistik/Central Stastistics Bureau) of Indonesia, I can see that visitors from Singapore is topping the chart. The second is European visitors, the third is Malaysian visitors, the fourth is Japanese visitors, and the fifth is Australian visitors.

Flights from Singapore can be done by any carriers, the as you might already know SIA is the biggest in Singapore. Although they share flight with Garuda, still SIA is ruling in Singapore. Flights from Europe also provide cheap seats to fly from Singapore to Jakarta (e.g. Lufthansa or KLM). So, in general Singapore's airlines (SIA or Silk Air) are for sure reaping profit from that.

Flights from Europe can be done by any carriers that fly to South East Asia except Garuda. Star Alliance and Oneworld alliance are dominating. Big airlines such as Lufthansa and SIA are joining the Star Alliance therefore they can share passengers create most economic flight to South East Asia, especially Indonesia. Oneworld alliance is also doing it. BA and other big airlines such as Qantas from Australia can share passengers and create most economic route to South East Asia and Australia (off course one can stop in Indonesia). Once again, Singaporeans are taking the benefit.

Looking at the statistics above and the flight cartel of the world (e.g. star alliance and oneworld), one can think of "hidden agenda" in the banning of Indonesia's Airlines to fly in Europe. I can imagine huge amount of money in this business. I can see that Singaporean might reap a lot of profit from the ban. SIA fly from London (2nd largest visitors from Europe to Indonesia) with a bargain price. LH and SIA share flights from Europe (while the Germans are the largest visitors to Indonesia from Europe). Totally ban any flights from Indonesian carrier and monopolize the business.

This is an affect of free world trade. The one that can set the rules, can play arrogantly and dominating the market without any fairness. If the Singaporean can reap a lot of money from this ban, then there is a sign of corruption in EU. I believe huge money plays big role here and once again Economic Invasion has been played.

If I were the government of Indonesia, I would ban any flights from Europe to Indonesia except to Batam. From Batam travellers have to use local airlines to travel in Indonesia, but first build Batam International Airport bigger. Whose money to use....off course Singaporean's money...ha ha ha...back to square one..

1 comment:

  1. All Indonesian airlines and several from Russia, Ukraine and Angola will be banned from flying to the European Union due to safety concerns, the European Commission said Thursday. Indonesian airlines have been hit by a string of accidents this year, leading the US Federal Aviation Authority in April to downgrade the country's rating from its lowest category.
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    Tanyaa
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