Agustina Wayansari, The Jakarta Post, Jakarta
PT Mandala Airlines retired four of its aging Boeing 737-200 planes earlier than planned Tuesday, expecting to replace them soon with four new planes from Airbus.
"With the fuel prices at US$100 it is time for Mandala to review the operation of the Boeings," Mandala CEO Warwick Brady told reporters.
Brady said from the retirement of the Boeings, which was initially planned for December, Mandala could save up to 43 percent per seat on fuel consumption.
"Not only do we want to operate modern planes to comply with safety and reliability issues, the Airbuses will also help us reduce (operational) costs up to 30 percent," Brady said.
Brady said the small engines used in the Boeings, which had been in operation for between 20 and 25 years, needed more fuel than the Airbus engines. They also had high maintenance costs as they needed up to three-month stays in the hangar for regular check-ups.
Ahead of the arrival of the new Airbuses, the airline company currently operates four Airbus A320s, two Airbus A319s and two Boeing 737-400s, which will also be put into retirement later this year.
Mandala has ordered 30 Airbuses worth US$1.8 billion to be delivered gradually through 2011, and expects to operate 44 Airbuses in 2012.
With the new planes coming this year, the company aims to increase its total passengers by 50 percent. An A320 can carry up to 180 passengers and the A319 can carry up to 144 passengers. The Boeing 737-200 has a capacity of 120 seats.
Mandala currently serves 24 routes to major cities in Indonesia, including the recently initiated destinations of Banjarmasin in South Kalimantan, Solo in Central Java and Kupang in East Nusa Tenggara, said Brady, adding that they were reviewing adding more routes.
Revenue management and networking director Ai Ling said Mandala would offer a special price starting from Rp 50,000 (around US$5.40) for domestic destinations following the launch of its new planes.
She also said the airline had cooperated with the Singapore Tourism Board to provide free ferry tickets from Batam to Singapore and vice versa for Mandala passengers, as well as to give a 50 percent discount for children during school holidays in June and July this year.
The airline said due to a restructuring plan it had improved on-time performance to over 85 percent of flights within 15 minutes of scheduled arrivals and 99 percent within one hour.
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