SINGAPORE: Indonesia National Air Carries Association (INACA) projects that fluctuation of crude price this year shall erode the profit of domestic airlines companies.The current high crude oil price, reaching US$110 per barrel serves as the main barrier for airlines company in deriving maximum profit, said Head of Indonesia National Air Carriers Association (INACA), Emirsyah Satar.After observing the current condition, it seems that only crude oil price significantly influence domestic airlines profit, he said amidst annual meeting of International Air Transport Association (IATA) yesterday.For the time being, crude oil price fluctuation is relatively similar to three years ago where such fluctuation sent tenths of foreign and domestic airlines to bankruptcy.In 2009, two domestic airlines companies, Linus Airways and Megantara Air, had to terminate their operations due to global financial turmoil.Nevertheless, Emirsyah is optimistic that market of air transportation will still grow although fuel price continues rising.Middles East uprising and Japans natural disaster, as he added, do not significantly slow down the growth of air transportation traffic to overseas.Middle east uprising and Japan natural disaster do not directly grant particular affect, he said.Emirsyah added that domestic flight traffic is estimated to grow more than 60 million times per year.Previously, IATA projects profit of 2011 aviation industry to break US$4 billion or soar by 78% compared to last year.IATA announced that the natural disaster, Middle East and North Africa's uprising and crude oil price hike only erode profit expectation of aviation industry.Furthermore, the growth of aviation industry must also be supported by the implementation of tight security and safety standard.From Jakarta, INACA Secretary General Buhanuddin Abdullah said that short route or commuter route is estimated to give up to 15% contribution to the total growth of domestic passengers in January-April 2011.Potential commuterShort route flights using plane with below 50-passengers capacity continues to rise over the last few years.This type of flight gives relatively decent contribution, said Burhanuddin.Based on the data of Central Bureau of Statistics, in January to April 2011, the percentage of domestic passengers grew by 25.62% while foreign passengers soared by 16.13% compared to the same period last year.During such period, domestic passengers was 16.2 million passengers while in the same period in 2010, it only reached 12.9 million. Foreign passenger on the other hand was 3.3 million people.Burhanuddin perceived Indonesia for facing airplane deficiency although Mandala Airlines has not yet operated until this month.Without Mandala, as he added, load factor is well maintained along with additional flights and the opening of new routes. (T02/NOM)
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