To encourage a larger number of Indonesian tourist in the Australian tourism industry, the Australian government have adjusted the visa requirement for Indonesian tourism industry. More than half of them are leisure travellers and the rest are business travellers. Surage Air is providing services between the pairs including CGK-SYD, CGK-MEL and CGK-PER along the coastal cities.

 

To handle the large number of the inbound and outbound flights, each week will have 167 flights which are provided our major competitors Garuda Indonesia, Qantas and Virgin. Even with the competitive operating environment, market entry of Suarge Air will satisfy rapid demand growth in Australia-Jakarta route and gain sufficient profit.

Asia is Suarge Air largest sector at the start-up stage which includes 15 destinations in 9 countries (Figure ). The Asia commercial aviation market has great business potential in term of the foreseeable economic development. The air travel demand growth is about 1.6 times of the Gross Domestic Product (GDP) growth. Therefore, the increasing demand for inbound and outbound air traffic service for our route will provide greater market profitability. All destinations are economic hubs and popular tourist attractions.

 

China has the unlimited surge of inbound tourists is the major economic driver for Indonesian tourism industry. The introduction of Free Trade Zone in Shanghai leads to rapid economic development and attracts foreign investment in the Shanghai region. Beijing’s new airport, Daxing International, will open on the Oct 1, 2019.  The increase number of time slot availability into Beijing provided by this new airport will be valuable to our market entry, providing more schedule flexibility and the ability to increase supply. Currently the routes we are operating are CGK-SHA, CGK-CAN, CGK-PEK.

 

Hong Kong is another major Asia market we are focusing on, there is a  8.5% growth rate of Indonesia residents visiting HK. This number is expected to grow post completion of the third runway in Hong Kong International Airport.

 

Japan and Indonesia share political and economical ties. Strong trade ties in particularly have lead to an enormous investment and economic growth between the two countries. Indonesia has been a significant supply chain for Japan’s corporations since then. In 2017, Japan became third biggest investor in Indonesia, after Singapore and China. Recently Japan has been assisting Indonesia to develop its transportation network, our routes will include:  CGK-KIX, CGK-HND. These pairings aim to connect CGK to Tokyo and Osaka with a focus on business travelers moving between the two countries.

 

Rising disposable incomes, gradual increases in vacation time, heightened globalization, and greater awareness of developments outside the Korean Peninsula are causing more Koreans to travel overseas. In 2017, over 26.5 million Koreans traveled abroad. Incheon International airport (ICN) is the largest  in Korea. It separates capacity between two terminals, the airport is extremely innovative and focuses on introducing new technologies into facilities in order to make the operation more practical. Jeju international airport (CJU)  is the busiest in south Korea therefore CGK-CJU may not be a suitable pair for FSNC. Despite the demand the current congestion in Jeju airport already leads to expensive and competitive slots and frequent delay, thus operating CGK-ICN will allow our start up connect jakarta to to South Korea's growing tourism market.  

 

Malaysia is popular leisure destination in South-east Asia with a large enough market to allow for a new airline entry. KUL could improve our network connectivity with its competitive advantage as a hub airport (24% market share in Asia hub traffic, 3th ranking). As a result  CGK-KUL would be a high profit route that would bring in a vary of passengers from all over the world into Jakarta.

 

Mumbai airport's passenger traffic was predicted to cross over 40 million in 2018-19, by 2021-22 almost 50 million passengers! This is a rapidly growing market which makes it a perfect connection for our new market entry. Our carrier will be flying a direct service between CGK and BOM.

 

SIN is a markor hub of Southeast Asia holding 24.8% market share of hub traffic. It is a transit point in Asia-Pacific region due to its supreme geography location allowing for optimal connectivity to a vary of destinations. Operating to SIN will therefore increase our connectivity, extensively expanding our network to each one of its own destinations. Singapore is not just a popular tourist destination, but also a economic hub. According to the Cvent’s annual list of top cities for meetings and events in Asia SIN has been ranked at the top for three years in a row. This business trafic aligns with our model further placing it as a successful route in our network.

In recent years there has been a push of the Indonesian tourism brand across Europe, as a result of this the demand for travel has increased, opening up new markets that are feasible to fly too. When deciding that European cities to fly to it is important to look at how strong their tourism market is, weather they have the demand to travel to Jakarta and also the connectivity of the airport.  France, germany and Turkey hold some of the busiest airports in all of Europe making the attractive network points for our market startup.

 

 

The Number of French tourists traveling to Indonesia increases each year, in 2017 250,921 French tourists travelled to Indonesia. It is among the top 5 listed countries that French tourists love to go to, furthermore the French require no visa to visit Indonesia for up to to 30 days. In a few years, Indonesia is predicted to be our fourth largest tourism market in Asia after China, Japan and India. In recent years there has been a push of the Indonesian tourism brand in France with advertisements being promoted on tour buses in France, on social media (“Winter in France champagne) and has appeared in Frances tourism expos. France is the twelfth most-popular destination country for Indonesian students, with almost 1,000 students studying in France in 2015-2016. The French community in the country has doubled in a decade. It is now estimated at 4,900 residents, mostly in Jakarta, Bali and Borneo. Currently there are no direct flight between Paris and CGK, those wishing to travel between France and Indonesia bust either transit through the golf (AUH, DOH, JED, DBX), South East Asia (HKG, SGN, SIN, BKK), Istanbul or London.

 

 

Indonesian tourism exhibitions in Germany in recent years have attracted a large amount of attention. The overall German Publics preference in tourism activities were diving, trekking, solo travellers, and cultural tourism. This makes Indonesia the perfect destination for Germanys traveling public.  Tourist destinations in Indonesia including Bali, Lombok and Sumatera are attracting the largest amount of inquiries from the German public. Up to 30,000 Indonesian nationals travel to Germany every year and the numbers continue to increase. Because of these increasing number the German Embassy intends to involve a service agency in processing the visa applications. The additional support will enable the Embassy to process more visa applications, thus opening the doors for more Indonesian tourist in Germany. Frankfurt is the airport of choice as its Germany's largest airport and offers the most opportunity for local and connecting traffic into CGK. there are no current direct services to Frankfurt,  flights must transit through the gulf, Southeast Asia, turkey or London.

 

 

As the most eastern metropolis in Europe, Turkey is a completely unsaturated and untapped market from Jakarta. As the fourth largest airport in Europe, it is denoted there is sufficient demand by paasenger follwoing . In 2014 Turkish airways decided to replace its daily Jakarta - Istanbul flight via Singapore with a direct service between the two countries.  Indonesia has become a super-power country and it is also a Muslim country like Turkey.  According to the Global Islamic Economy Indicator, Indonesia ranks 4th for halal tourism, which is geared towards Muslim families who abide by rules of Islam. Indonesia is listed for the first time among the top ten countries with the best halal tourism ecosystem. Indonesia aims to attract 3.8 million Muslim visitors in 2018, and five million by 2019, which will contribute towards its target of 20 million international visitors in the same year. Furthermore, Indonesia highlights and promotes the top five halal tourism destinations in Indonesia, namely Aceh, West Sumatra, Jakarta, West Java, and Lombok. In 2010, Turkey and Indonesia introduced visas on arrival in an effort to make their borders more porous for potential tourists. In 2016 both Indonesia and Turkey were in the top 5 fastest growing markets. Turkish airlines only operates once daily service direct to CGK from Istanbul, this makes it a perfect network point for our start up as we pick up on the demand spilled over from Turkish airlines, whilst also capitalising on the growing demand.