More carmakers caught in headlights of VW engine-rigging scandal

More carmakers caught in headlights of VW engine-rigging scandal
Volkswagen has admitted it installed illegal software into 11 million 2.0 liter and 3.0 liter diesel engines worldwide (AFP Photo/Josh Edelson)

Volkswagen emissions scandal

Iran's 'catastrophic mistake': Speculation, pressure, then admission

Iran's 'catastrophic mistake': Speculation, pressure, then admission
Analsyts say it is irresponsible to link the crash of a Ukraine International Airline Boeing 737-800 to the 737 MAX accidents (AFP Photo/INA FASSBENDER)

Missing MH370 likely to have disintegrated mid-flight: experts

Missing MH370 likely to have disintegrated mid-flight: experts
A Malaysia Airlines Boeing 777 commercial jet.

QZ8501 (AirAsia)

Leaders see horror of French Alps crash as probe gathers pace

"The Recalibration of Awareness – Apr 20/21, 2012 (Kryon channeled by Lee Carroll) (Subjects: Old Energy, Recalibration Lectures, God / Creator, Religions/Spiritual systems (Catholic Church, Priests/Nun’s, Worship, John Paul Pope, Women in the Church otherwise church will go, Current Pope won’t do it), Middle East, Jews, Governments will change (Internet, Media, Democracies, Dictators, North Korea, Nations voted at once), Integrity (Businesses, Tobacco Companies, Bankers/ Financial Institutes, Pharmaceutical company to collapse), Illuminati (Started in Greece, with Shipping, Financial markets, Stock markets, Pharmaceutical money (fund to build Africa, to develop)), Shift of Human Consciousness, (Old) Souls, Women, Masters to/already come back, Global Unity.... etc.) - (Text version)

“… The Shift in Human Nature

You're starting to see integrity change. Awareness recalibrates integrity, and the Human Being who would sit there and take advantage of another Human Being in an old energy would never do it in a new energy. The reason? It will become intuitive, so this is a shift in Human Nature as well, for in the past you have assumed that people take advantage of people first and integrity comes later. That's just ordinary Human nature.

In the past, Human nature expressed within governments worked like this: If you were stronger than the other one, you simply conquered them. If you were strong, it was an invitation to conquer. If you were weak, it was an invitation to be conquered. No one even thought about it. It was the way of things. The bigger you could have your armies, the better they would do when you sent them out to conquer. That's not how you think today. Did you notice?

Any country that thinks this way today will not survive, for humanity has discovered that the world goes far better by putting things together instead of tearing them apart. The new energy puts the weak and strong together in ways that make sense and that have integrity. Take a look at what happened to some of the businesses in this great land (USA). Up to 30 years ago, when you started realizing some of them didn't have integrity, you eliminated them. What happened to the tobacco companies when you realized they were knowingly addicting your children? Today, they still sell their products to less-aware countries, but that will also change.

What did you do a few years ago when you realized that your bankers were actually selling you homes that they knew you couldn't pay for later? They were walking away, smiling greedily, not thinking about the heartbreak that was to follow when a life's dream would be lost. Dear American, you are in a recession. However, this is like when you prune a tree and cut back the branches. When the tree grows back, you've got control and the branches will grow bigger and stronger than they were before, without the greed factor. Then, if you don't like the way it grows back, you'll prune it again! I tell you this because awareness is now in control of big money. It's right before your eyes, what you're doing. But fear often rules. …”

Wednesday, January 24, 2007

Agency mulls online ticketing for MRT

The Jakarta Post, Jakarta

The Jakarta Transportation Agency is planning to apply an integrated ticketing for the mass rapid transit (MRT) system.

The online ticketing system would allow passengers to use the ticket for four transportation modes: the subway, monorail, busway and waterway, agency head Nurachman said Tuesday.

"Currently, we use smart card ticketing for the busway. We're looking forward to introducing a system that offers tickets to suit every journey, regardless of stages or modes," he said.

In an attempt to beat traffic congestion, the city administration is now working on the MRT project, comprising the busway, subway, monorail and waterway systems.

The three initial busway corridors are soon to be complemented by 12 others.

Data from busway operator BP TransJakarta shows that the first corridor, launched in early 2004, carries some 20,000 passengers a day. More than 100,000 people use the busway daily, 14 percent of whom are private car owners, according to a 2006 study by the Japan International Cooperation Agency (JICA).

Corridors 4 to 7 are ready to be launched soon, while the other eight corridors are still under construction.

Nurachman said a "flat fare" system would be implemented for Corridors 4 to 7.

The subway, which will run from Lebak Bulus in South Jakarta, to Kota in West Jakarta, will be funded by a US$800 million loan from the Japan Bank for International Cooperation (JBIC), which was secured last year.

The development of planning and engineering feasibility studies is expected to be finished this year, while the first phase of the subway line from Lebak Bulus to Dukuh Atas, South Jakarta, is scheduled for completion by 2012.

The monorail will include two lines -- the green line and the blue line -- and cost an estimated US$650 million.

The 14.3-kilometer green line will run through Central Jakarta and South Jakarta, from Jl. Rasuna Said and Jl. Gatot Subroto to the Sudirman business district, and then to Senayan, Jl. Pejompongan and back to Jl. Rasuna Said. There will be 16 stations along the line.

The blue line will link Kampung Melayu in East Jakarta to Roxy, West Jakarta, and will have 11 stations.

Officials initially said the green line was due to be completed by the end of 2007, but it has been delayed due to funding problems.

Little progress has been made in the development of the waterway system.

Denny Taloga, who sits on City Council Commission D for public works, said Tuesday the integrated ticketing system would not be brought in until the feasibility studies were done.

"We will also have to consider the operational costs of the four transportation systems," he added.

Busway contract out for tender

The Jakarta Post, Jakarta

The Jakarta Transportation Agency is holding a tender to select a consortium to operate the four new busway corridors.

Agency head Nurachman said Tuesday the evaluation of the bidders' credibility and performance was still underway.

"Only one will be named the winner. It will operate corridors 4 to 7, including the management of personnel and busway operations and maintenance," Nurachman said.

The four new corridors, to be launched on January 27, will link Pulogadung in East Jakarta with Dukuh Atas in Central Jakarta; Kampung Melayu in East Jakarta with Ancol in North Jakarta; Ragunan in South Jakarta with Kuningan in Central Jakarta; and Kampung Rambutan in East Jakarta with Kampung Melayu in East Jakarta.

Tuesday, January 23, 2007

New cars running low on gas, hit by fuel price hikes

Debnath Guharoy, The Jakarta Post

The industry hit hardest by the twin fuel price hikes of 2005 was perhaps the automotive industry, more precisely, the new-car market. No surprises there, considering cars are a family's second-largest "investment" and unlike the home, they run on fuel.

The recovery that's now taking place in the car market has switched dramatically in favor of used cars, not new cars. These conclusions are based on Roy Morgan Single Source, Indonesia's largest syndicated survey with 25,000 respondents annually, covering 90 percent of the population over the age of 14.

The survey also reveals that on the broader canvas of transportation, the use of public transportation has also remained flat since September 2005. People, especially at the lower end of society, are using transport more for essential travel and seemingly less for leisure.

About 60 million people around the country regularly travel by bus, while almost million use the train. These numbers have remained flat. In contrast, two-wheeler buying intentions are now on the way up reflecting the confidence of the middle class.

Moving up the socio-economic ladder, about 12 million people often travel by taxi, almost unaffected by recent inflation, but only 4 million households have a car in urban Indonesia. These do not include institutionally owned vehicles like company or government-owned cars used at home after working hours. Nor do these figures include the few rural homes that have cars.

Demand has dipped for cars, and crashed in the case of new cars. The signs of sluggishness over the near term are a major problem for the automotive industry. On the other hand, the administrative authorities in major cites like Jakarta, for example, already overwhelmed by traffic congestion, are probably sighing with relief.

Dealers in used cars are in for good times ahead -- witness the upward swing in demand. How is the new car industry reacting? Only by understanding the people who have dropped out of the market, and analysing the needs of people who remain interested in new cars, will automotive manufacturers be able to chart a course for the future.

Any attempts to simply "move metal" off the factory floor based on knee-jerk reactions will be fraught with danger. For years, the Toyota brand has gone from strength to strength with well over half of all people planning to buy a new car actively considering the brand, across all categories.

A lot of that success is thanks to the ubiquitous Kijang. Today, that grip on the new car buyer's mind has loosened with only 43 percent of intending purchasers planning to buy a Toyota model. The signs of change in market dynamics were ignited by the price of fuel, so that a different marketplace exists today, which is a problem for some and an opportunity for others.

These are the facts that Toyota needs to respond to in its attempts to protect market share and brand equity. These are the same facts that all their competitors need to understand if they wish to seize the opportunities presented by a market in flux.

This is yet another industry that has ignored the influence of the Indonesian woman. All of the "evidence" that carmakers have traditionally based their marketing upon has consisted of registration papers and financing documents, usually in the name of the man of the house.

Yet, over a third of the people currently intending to buy a new car are women. Whose name finally appears on the documentation is almost irrelevant. The people who often, but not always, influences the decision to purchase is the primary owner-driver, so that it is these people who are vital to success in the marketplace.

If the current demand for new cars stands at 168,000 units, isn't it important to understand the key drivers, as well as the lifestyles and needs of the owner-drivers themselves?

But look around you and what do you see in the media out there? Billboards can be justified by the need to command a "presence" but the use of free-to-air TV defies logic.

The fact that almost everybody watches TV everyday is not an intelligent rationale when it's obvious that most of the viewers won't be buying a new car any time soon. If "the medium is the message", then Pay TV would be a far more focussed choice.

Combine that with selected newspapers and magazines, radio stations in cities where the intenders reside, and promotions and financing packages offered from appropriate shopping malls, then today's scarce resources would end up being put to better use.

All it takes to verify the media selections is a simple quantification of people intending to buy, say, a "small car", the people who will consider or reject the makes within that segment and the capability of each title, radio station, channel or even major shopping mall to reach that identified group.

Savvy marketers and their agencies are doing precisely that today, across every conceivable product category. It gives a whole new meaning to that oft-abused word, "accountability", especially when all the stakeholders of the brand can monitor progress every 90 days.

I should add that I have nothing against TV and I don't have any pecuniary interest in any other media, either. Nor has the invitation to speak at this week's seminar hosted by SPS, the Publishers Association, led to a "plug" here for the printed medium. A detailed look at the Indonesian media scene will be featured in this column next Tuesday.

The contributor is an advertising professional, turned researcher and consultant, based in Melbourne. He has lived and worked across the Asia Pacific region, including Indonesia. He remains a regular visitor.

Adam Air denies cost-cutting measures

Alvin Darlanika Soedarjo, The Jakarta Post, Jakarta

Adam Air denied on Monday accusations that it had neglected passengers and aircraft safety for financial reasons.

"I have never done any economizing or cost cutting in our maintenance sector. Maintenance takes up 40 percent of our total operational costs," airline president Adam Adhitya Suherman said during a hearing at the House of Representatives.

He added that the airline's reputation was highly linked with safety.

Critics have alleged that senior management ordered Adam Air pilots to fly in all weather and regardless of aircraft conditions.

Adam said that he had not seen any documents written by his mother, Adam Air co-founder Sandra Ang, ordering pilots to fly even if there were problems, and added that he apologized if it had happened.

"I haven't seen any of the letters instructing our pilots to keep flying. We know what the consequences are if we force any of our pilots to fly any of our failing aircraft. I always hold on to the passengers' trust to use our service," Adam said.

"What we have done is just prohibit our pilots to fly," Adam said, adding that the management of Adam Air had canceled flights several times during bad weather.

"In the past, Adam Air had canceled risky flights to Jambi, Pontianak and Bengkulu because of the permeating haze there."

He added that Adam Air had never banned its pilots from joining unions.

Adam also denied that House Speaker Agung Laksono was still involved in the company.

"Adam Air is a family company. Mr Agung Laksono, who is no longer with us, was our commissioner from Nov. 21, 2003. This was before he became the speaker," he said.

In response to Adam's defense, members of House Commission V overseeing transportation have decided to establish an internal team to investigate the fate of Adam Air flight KI 574 and the sinking of the Senopati Nusantara ferry.

Commission V head Akhmad Muqowam said that several recent land, sea and air accidents meant that transportation services in the country needed to be overhauled.

Legislator Azwar Anas said that despite the lengthy explanation from Adam Air's management, there were several things that remained a mystery.

Monday, January 22, 2007

Each victim of Adam Air plane to receive Rp 500m compensation

JAKARTA (Antara): Adam Air Monday promised to give Rp 500 million (US$55,555) compensation to each passenger of its plane, which has disappeared since Jan. 1 when it was on its way from East Java's capital of Surabaya to North Sulawesi's capital of Manado.

The plane has disappeared together with its 92 passengers and 10 crew members.

Adam Air President Director Adam Aditya Suherman said that the compensation was not included money to be received by relatives of the passengers from state-owned insurance company PT Jasa Raharja.

"All passengers have been registered in the insurance company. But for our sympathy, we will also give Rp 500 million compensation for each of them," he told House of Representatives' Commission V for transportation affairs.

According to Adam, any heirs of the passengers, who have right to receive the compensation, have to be decided by courts.

Search and rescue team has been able to collect dozens of goods believed coming from Adam Air plane, but it so far failed to locate the main body of the ill-fated plane. (Alvin D. Soedarjo)

Jakarta urged to decentralize

Adianto P. Simamora, The Jakarta Post, Jakarta

Two former ministers for the environment have called on the city administration to relocate some activities from the capital to peripheral areas in order to curb pollution.

Emil Salim and Sarwono Kusumaatmaja both spoke Friday during the book launch of Jakarta, Kota Polusi (Jakarta, a polluted city).

Emil, who served in president Suharto's cabinet, said that the relocation of a number of offices and public services to outside Jakarta in the past had significantly contributed to reducing traffic congestion in the city.

The airport and the biggest state university have both been outside of Jakarta for some time.

In the 1980s the central government decided to build the new Soekarno-Hatta International Airport outside the city, in Cengkareng, Banten province, to replace the old Kemayoran airport in Central Jakarta, which was rapidly becoming a residential area.

Overcrowding in Salemba, Central Jakarta, was also behind the decision to build a University of Indonesia campus on the outskirts of Jakarta in Depok.

"Why don't the authorities apply the (relocation) concept to control air pollution here? It will trim the volume of commuters coming into the city," Emil said.

"If shopping malls, for example, are pushed to peripheral areas, people won't shop in Jakarta. Thus, fewer cars will enter the city's streets."

Shopping malls built in downtown areas contributed much to the air pollution, Emil said.

"All shopping malls offer large parking lots in order to encourage car owners to shop. They trigger more traffic jams in the city," he said.

Emil also proposed the development of Tanjung Priok Port could be extended to other provinces of Banten or West Java to reduce cars or trucks from the two provinces crossing through Jakarta.

The exhaust from gasoline-guzzling private cars contribute up to 80 percent of the air pollution in the city.

Meanwhile, Sarwono who was also a minister in the New Order era, said the realization of the megacity concept could be an important step to controlling air pollution in the city.

"Many cars traveling in the capital are from outside Jakarta. Thus, to create cleaner air, we must remove the main source of pollution from vehicles' emissions. Jakarta then can then extend public transportation to megacity areas to reduce the use of private cars," he said.

The megacity will incorporate Jakarta, Bogor, Depok, Tangerang, Bekasi, Puncak and part of Cianjur in one integrated area, to be known as Jabodetabekpunjur.

The administration says that at least 660,000 cars from Bogor, Depok, Tangerang, Bekasi, Puncak and Cianjur enter Jakarta every day.

The large number of commuters has worsened traffic congestion, particularly at peak hours. Several attempts have been made to address the situation, including the imposition of the three-in-one traffic policy, increased parking fees and the introduction of the busway service. Traffic congestion and air pollution remain high.

Jakarta currently operates three busway corridors and will launch another four corridors next week, all of them operating in the Jakarta area.

However, the administration recently also announced that they would build six inner-city turnpikes to create more spaces for motorists, a plan that was called counterproductive to the clean air campaign by environmentalists.

Emil said the planned turnpikes would only encourage people to drive their cars and would at the end worsen the environment.

"As the traffic increases, the administration builds turnpikes. It will then encourage people to buy the cars. The administration must stop this practice. They must promote public transportation," he said.

There are currently at least 2.5 million private cars and 3.8 million motorcycles in the city every day, but only 255,000 public transportation vehicles.

The number of private cars is expected to increase by 12 percent a year, which would far outweigh the number of roads being built. Complete gridlock by 2014 has been predicted if steps are not taken to improve the situation.

Sunday, January 21, 2007

Suspected black box found

JAKARTA (Antara): The search and rescue team has received an orange box, suspected as a black box of ill-fated Adam Air plane, which has been disappeared with 102 people aboard since Jan. 1when it was on its way from Surabaya to Manado.

The box was found by Ridwan, 41, a fisherman in Somba Utara waters, Majene regency, South Sulawesi province, Antara news agency reported Sunday.

Pare Pare Police chief Sr. Comr. Gatot Hariyanto said that the box was handed over to the joint SAR team tasked to track the missing plane for further investigation by the Transportation Safety National Committee (KNKT).

The box measuring 21 centimeters long, 6 centimeters width, and 4.5 centimeters high, is being kept in the SAR Command Post in Hasanuddin airport, South Sulawesi provincial capital of Makassar.

Air Force chief of staff Marshall Herman Prayitno said that the box found in Majene is like a plane black box, but he could not confirm that it came from Adam Air plane until the investigation completes.

SAR team has collected dozens of goods, which are suspected coming from Adam Air plane, but the team has not found the main body of the ill-fated aircraft as well as bodies its passengers.

Engine trouble delays Mandala

INDONESIA (The Jakarta Post): Engine trouble delayed a Mandala Airlines Boeing 737-200 flight from Pattimura airport in Ambon, Maluku, to Makassar, South Sulawesi, and then to Jakarta.

The RI-661 jetliner was suppose to leave the airport Friday but it was still under repair by midday Saturday.

Details of the engine problem remain unknown as the company has not yet released a statement regarding the delay.

More than 100 passengers were left stranded at the airport. Some stayed the night, waiting for the repairs to be completed, while others returned their tickets and took another flight.

""We don't want to take the risk of flying on an aircraft suffering from engine trouble," said passenger Rosdianty, who took another flight to Makassar.

Pertamina slashes its fuel price for transportation

JAKARTA (The Jakarta Post): State owned oil and gas firm Pertamina lowered its fuel price for transportation use which is effective on Saturday due to the declining crude oil price and strengthening rupiah against the U.S. dollar.

In Jakarta and West Java, the new price of Pertamax fuel is Rp 4,850 a liter, down from Rp 5,200 a liter on Jan. 1.

Pertamax plus is lowered to a new price of Rp 5,000 a liter from Rp 5,350 a liter on Jan. 1

Biopertamax price is also down from Rp 5,200 per liter to Rp 4,850 per liter, while Pertamina dex drops from 5,900 to 5,600.

Pertamina also adjusts its fuel price in other regions across the country.

Saturday, January 20, 2007

RI should review all policies on transportation: ITF

JAKARTA (Antara) : The International Transport Workers Federation (ITF) expressed concern about a recent series of deadly transportation accidents in Indonesia such as the sink of Senopati Nusantara passenger ship, the missing of Adam Air jetliner and the derailment of Bengawan train.

Indonesian transport authority should take initiative to encourage the government to review all policies on transportation to avoid lethal accidents from recurring, ITF Asia Pacific regional secretary Shigeru Wadha said in a letter conveyed to Indonesia-chapter ITF.

Wadha was quoted as saying that London-based ITF secretary general David Cockroft had been deeply concerned about the series of deadly transportation tragedies in Indonesia.

The Tokyo-based ITF Asia Pacific secretary attributed the Indonesian transportation tragedies to past transportation industrial sector which did not prioritize security and safety aspects.

The current transportation means in Indonesia both made in Indonesia and overseas were already old, Wadha was quoted as saying.

Air Asia plane fails to take off in Padang

PADANG (Antara): Air Asia Boeing 737-300 plane failed Friday to take off from the Minangkabau Airport, Padang due to failure to unlock the front wheel.

The pilot of the plane, which served Padang-Jakarta route, decided to cancel the take off because of the wheel problem, said Cik Dien an official in the Minangkabau Airport.

155 passengers on board are safe without any injuries.

They have to wait for uncertain period to fly as other planes with the same route are fully booked.

Indonesia's Adam Air to switch to Airbus

Jakarta (ANTARA News) - Indonesian budget carrier Adam Air said Thursday it plans to replace its fleet of Boeing 737s with Airbus 320s from next year.

Adam Air sales director Gugi Pringwa Saputra said the additional aircraft would enable the company to open new routes.

"We will operate 40 Airbus planes in stages starting in 2008 to meet the demand of passengers for a more convenient and comfortable flight," Saputra told AFP.

He said the company was also examining the possibility of adding flights to a number of areas in eastern Indonesia. He declined to give further details of the switch to European maker Airbus.

An Adam Air Boeing 737-400 carrying 96 passengers and six crew went missing halfway through a flight from Surabaya on the central island of Java to Manado on Sulawesi on January 1.

Indonesian and US Navy ships were Thursday continuing to search for wreckage of the plane in the seas off western Sulawesi.

Privately-owned Adam Air began operations in 2003 and serves mostly domestic routes, with Singapore and Malaysia's Penang its only international destinations.

The company is a leading low-cost carrier in the competitive Indonesian market, marketing itself as a "boutique airline" between traditional budget firms and regular airlines.

According to Adam Air's website, the carrier had 19 Boeing 737 jets in its fleet as of January 2006.

Company president director Adam Suherman said in November the carrier would concentrate on its domestic market, which is still largely untapped.

The airline expects to handle 11 million passengers in 2007, up from an estimated seven million in 2006.

Public and private Indonesian airlines have been repeatedly criticised over their poor safety records, repeated delays and bad management.

Garuda Indonesia still in the red in 2006

Jakarta (ANTARA News/Asia Pulse) - The country's flag carrier Garuda Indonesia reported a loss of Rp298.2 billion US$33 million) in 2006, a significant improvement on its Rp688.4 billion loss in 2005.

Garuda President Emirsyah Satar said the airline's load factor improvement were not enough to offset spiralling fuel prices and the cost of servicing its US$749 million in debts.

The government included Garuda in its privatization program this year, and the Rajawali Group, a widely diversified corporation, has submitted a proposal to acquire a stake in the airline.

However, the government will maintain the majority share of at least 51 per cent in Garuda.

Garuda Indonesia Contests Frequent Accidents

Friday, 19 January, 2007 | 15:30 WIB

TEMPO Interactive, Jakarta: PT Garuda Indonesia disputed the plane mishap data of the National Committee for Transportation Safety. Based on 2002 to 2007, Garuda’s aircraft underwent 14 mishaps, that is four accidents and 10 incidents.

“The data is incorrect,” said Garuda Indonesia’s Communication Head, Pujobroto, in his letter to Koran Tempo yesterday (18/1). According to him, during the period, Garuda only had one serious accident, on January 16, 2002.

At that time, Garuda plane did an emergency landing on the Bengawan Solo River in Klaten Central Java. All passengers and air crew, totaling 61, survived. Only one cabin crew member died.

Pujo explained, in flight industry, the safety indicator measurement is used as the incident rate, which is the total incidents per 1,000 flights. From 2006 to 2007, Garuda’s incident ratio is in fact undergoing a significant decrease.

In Koran Tempo yesterday’s edition, it was stated that during 2002 through to January 11, 2007, there were 143 airplane mishaps in Indonesia. Out of the total, Garuda Indonesia had the most mishaps.

A mishap is called an accident if it causes fatal structural damage and it is called an incident if it only shows an abnormal operation. At the next rank of most mishaps are Mandala Airlines and Merpati Nusantara Airlines (each 11 times), Trigana Air Service and Lion Air (9 times) and Pelita Air Service and Dirgantara Air Service (8 times).

According to Garuda Indonesia’s Operation Director, Ari Sapari, Garuda may have the most flight schedules so it is considered to be the most frequent to undergo mishaps. He asked the limitation between accident and incident be made clearer. “Don’t dramatize it. It’ll create the wrong perceptions,” he said two days ago.

Jobpie Sugiharto

Indonesia's public transport perils

By Lucy Williamson, BBC News, Jakarta

In a country of 220 million people, spread across some 17,000 islands, transport systems are crucial to keeping Indonesia moving.

But transport statistics here make worrying reading for passengers.

Last year, there was an aircraft incident recorded every nine to 10 days - planes that crashed, almost crashed, missed the runway, were forced into emergency landing or had technical problems.

There were two train crashes or derailments every month, and at least eight accidents at sea.

These are official statistics. The real figures, say analysts, are probably even higher.

This year has got off to a particularly bad start.

On New Year's Day, a passenger plane carrying 102 people disappeared from radar screens near the island of Sulawesi.

Rescue teams were already out in the Java Sea at the time, looking for hundreds of victims of a ferry disaster that had happened two days earlier.

Around the same time, a ferry carrying 58 people sank off the coast of Sumatra, a speedboat went missing near Kalimantan, a train derailed in Central Java and two other minor airline incidents have been reported.

Poor investment

Tough questions are being asked about why Indonesians are at so much risk when they travel.

Bambang Susantono, head of Indonesia's Transport Society, an independent think tank, says that since the economic crisis in the late 1990s, investment has been a big problem.

"The government doesn't have enough money to build the infrastructure it needs; things like repairing damaged ports, or making improvements to airports," he said.

According to the Transport Society, hundreds of millions of US dollars are needed to bring infrastructure up to standard.

The government denies it is risking safety, but does admit that it needs more money.

Not everyone, though, agrees that the solution is to bring in the private sector.

Air and sea transportation have already been partly liberalised.

The result is a mushrooming of cheaper, budget carriers, which now account for around two-thirds of the incidents reported on scheduled flights.

That is something that worries Bambang Sustanono.

"Our concern is that they cut costs by simplifying safety procedures," he said.

"You hear stories about instruments not working, or pilots working long hours. It's a signal that something has to be fixed in the airline industry."

The plane lost at the beginning of 2007 was operated by budget carrier Adam Air.

Twenty-nine of its pilots have resigned in recent years, and several have made allegations that the company pressured its pilots to fly unsafe planes.

The company denies the allegations, and a court case is in progress.

With so much murkiness around the causes of disasters, people are increasingly turning to the government and asking why it is so difficult to enforce safety regulations.

Wendy Aritenang, Secretary-General of the Transport Ministry, says the government needs to catch up with a rapidly growing industry - deploying more inspectors, enforcing regulations better and encouraging passengers to report on negligent operators.

Reappraisal

At Kota railway station in north Jakarta, the problems of maintaining crumbling networks are worryingly familiar.

A technician, waiting out his shift in a dark office on the platform, told us that he and his colleagues were simply "forcing the trains to go".

"The trains are very old," he said, "and there's a lack of spare parts. The attitude of our superiors is [to] make the best of what we've got; so we cannibalise the broken engines to fix the others."

A bill going through parliament now is set to open up the railway network to private operators in the next few years.

Government regulations are going to need to catch up fast to stop safety problems growing.

The spotlight has been on air operators in recent years, but Indah Suksmaningsih from Indonesia's Consumer Association says this attention does not mean safety on cheaper forms of transport is any better.

She believes the lack of a safety culture, combined with a reluctance among poorer Indonesians to make complaints, means operators often get off without penalties.

But Bambang Sustanono believes the growing focus on air safety, following de-regulation, is forcing a reappraisal of safety issues on all forms of transport.

At the start of 2007, the president announced the formation of a new transport committee to assess what needs to be done across the industry - a process Wendy Aritenang says his ministry has already begun.

He is confident this is the right time to push for more liberalisation in the transport sector.

"We give opportunities to the private sector," he told me, "but not a blank cheque. We give opportunities, but also responsibilities. I think this is a good way to improve the transport sector."

Commuters waiting for their trains here at Kota station say they broadly welcome the idea of private investment in the railways.

The possibility of cheaper fares goes down well with the poor majority here, and there is a hope that competition might improve the quality too.

But making - and keeping - the railways safe will need massive investment, something analysts say many sea and air operators have so far been unable or unwilling to provide.

And if the government cannot pay, passengers here may need to make a choice between lower fares and higher safety standards.

AirAsia Could Be Bigger than SIA, Cathay Pacific: Fernandes

The Bali Times

SINGAPORE - AirAsia, the budget carrier launched five years ago with two aircraft, says it could be bigger than Asian giants Singapore Airlines (SIA) and Cathay Pacific by next year.

The founder of the Malaysia-based airline, Tony Fernandes, was commenting after his airline signed contracts on Monday for another 50 medium-range Airbus A320 jets and options on 50 more.

“I’d imagine we’d be the largest airline in Asia by passenger size by 2013 or 2014,” The Business Times quoted Fernandes as saying. “In fact by next year, we could be bigger than Singapore Airlines and Cathay Pacific in terms of passenger carriage.”

Fernandes said in November that AirAsia expected to carry at least 16 million passengers in the financial year to June 2007, up from 9.31 million previously.

In October, Singapore Airlines reported that it flew a record nine million passengers during the first half of the 2006-2007 financial year.

If AirAsia surpasses SIA and Cathay Pacific in passenger numbers, “The only airlines bigger than us would be Qantas, two Japanese airlines and a Chinese airline,” the Today newspaper quoted him as saying. He was referring to the Australian flag carrier as well as JAL, ANA and Air China.

Fernandes brought budget air travel to Southeast Asia with his short-haul, low-cost formula but last Friday he surprised the aviation industry by announcing a new budget airline for long-haul routes.

Fernandes said AirAsia X would take off in July with flights to Britain for as little as 9.99 ringgit, or less than US$3.

The airline will be operated by Malaysian carrier Fly Asian Express (FAX), also founded by Fernandes. It currently provides rural air services on Borneo island.

Fernandes said he expected AirAsia X to carry 500,000 passengers in its first year of operation, and was looking to acquire 20 new aircraft - either the Boeing 777-300 or Airbus A330-300, both of which are twin-aisle jets.

Singapore financial weekly The Edge quoted Fernandes this week as saying AirAsia X would help expedite his dream of creating the world’s biggest airline group.

“Within the next seven years, I am convinced we will be the world’s largest airline, with 50 million passengers a year,” Fernandes was quoted as saying.

AirAsia has 50 planes, flying to Malaysia, Thailand, Indonesia, Singapore, Cambodia, Vietnam and the Philippines.