[Kabar-indonesia] Bali Tourist Lifeline in Peril: Garuda May End Australia-Denpasar Direct Flights

[JoyoNews at aol.com]

The Age (Melbourne)
Saturday, October 7, 2006

Bali may lose tourist lifeline

by Clive Dorman

THIS is the story of two favourite overseas holiday destinations for
Australians - one seemingly on the way out, the other definitely on
the way up. After two terrorism attacks in Bali in the past four years
that sent foreign tourists en masse to other destinations, the
Indonesian state airline, Garuda, is now threatening to end direct
services between Denpasar and Australia.

Garuda officials say the loss-making airline can no longer afford to
run two "hubs" in Bali and Jakarta - which, they say, "is like running
two different airlines" - and want to centralise the carrier's
operations in the national capital. That would mean flights from
Sydney and Melbourne, for example, would operate non-stop to Jakarta
and passengers to Bali would need to take a connecting flight back to
Denpasar. The whole exercise would nearly double the current non-stop
flight time to Bali and fares would inevitably rise.

Travel industry officials this week fear the Garuda move, if it is
implemented, would virtually spell the end of Bali as a tourist
destination, since Garuda remains the biggest carrier to the island.

Even after the dramatic cutbacks in services following the most recent
bombings, Garuda still operates four flights a week from Melbourne to
Bali (two via Sydney), while the Qantas group has only two non-stops
(to be taken over by Jetstar next month).

The second bombings triggered the collapse of the only other airline
flying from Melbourne and Sydney to Denpasar, Bali-based Air Paradise
International.

The question is, if Garuda effectively exits the Bali market, will the
lost capacity be filled by other carriers. Jetstar says it's simply a
matter of supply and demand and, if it has the planes available next
year, it may consider putting on extra services. There's even talk
that the owners of Air Paradise may revive the airline if Garuda pulls
out.

However, the threat of terrorism will likely be the final determinant.
In spite of recent successes by the Indonesian military against the
south-east Asian terror group, Jemaah Islamiah, Australians travelling
to Bali are still being warned of "the very high threat of terrorist
attack".

"We continue to receive a stream of reporting indicating that
terrorists are in the advanced stages of planning attacks against
Western interests in Indonesia against a range of targets, including
places frequented by foreigners," the Australian Department of Foreign
Affairs says. "If you are in Indonesia, including Bali, and are
concerned for your safety you should consider departing. If you do
decide to travel to Indonesia, including Bali, you should exercise
extreme caution ... Terrorist attacks against Westerners in Bali and
Jakarta indicate that these areas are a priority target for terrorists
in Indonesia."

Bali's woes have been a bonus for competing destinations, such as
Malaysia, Thailand and Fiji. Another long-favoured destination for
Australians, Hawaii, is now likely to scoop up hundreds of thousands
of Aussies looking for a place in the sun, with a massive increase in
the number of weekly seats from Melbourne and Sydney to Honolulu.

Jetstar last month finally announced its delayed launch of services to
Hawaii and went in hard, with introductory fares priced from just $250
one-way and the first flights in the last week of December.

There will be two overnight flights a week (Mondays and Fridays,
departing 5.15pm, arriving Honolulu at 6.45am) from Melbourne, with a
daylight flight back (depart Honolulu at 8.15am, arrive Melbourne
4.55pm). These are the first non-stops between Melbourne and Hawaii
for some years and, even though the ultra-cheap introductory discounts
are no longer available, return fares are still available for under
$1000 return - cheaper than they've been for 15 years.

Jetstar will also operate three flights a week from Sydney to
Honolulu, even though Qantas will continue to operate three of its
own. That means Jetstar will compete directly with its parent company,
pitching its own fares of less than $900 return against Qantas'
regular discounts that are as high as $1400 return. Qantas' rates are
likely to come down but stay at a premium over Jetstar, since Jetstar
passengers have to buy meals and other in-flight services that are
free on Qantas.

Fighting it out with both of them in the Sydney market is Hawaiian
Airlines, which launched four weekly flights last year, while Air
Canada, which operates a daily Sydney-Honolulu-Vancouver service, is
expected to withdraw from the market, instead initiating a daily
non-stop to Sydney from Los Angeles.

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Joyo Indonesia News Service
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