Sriwijaya Air will not add any aircraft in 2018, as the Indonesian market continues to be flooded with cheap fares.
Instead, the airline will look to maximise the utilisation of its Boeing 737 fleet, as well as cut loss-making routes, its director of corporate planning and business development Jefferson Jauwena tells FlightGlobal.
He adds that while the group, which also includes sister carrier Nam Air, had planned to add 15 aircraft in 2017, it took delivery of only five Boeing 737-800s and four ATR 72-600 turboprops.
This was due to the strong capacity growth in the market, higher fuel price, strong yield pressure, and with the country’s economic growth falling below expectations.
These led the group to a loss in 2017, after three consecutive years of profitability.
This year, the only addition will likely be an ATR 72 for Nam.
Jauwena adds that while the carrier is in talks for more 737s, any order will depend on market conditions. Its only scheduled deliveries are two 737 Max 9s from lessors in 2019, which will help the airline expand into China.
“If the situation improves, our plan is to add at least six 737s a year for the next two to three years.”
Sriwijaya operates a fleet of 34 737s, while Nam has 11 737s and five ATR 72s. It also has five 737-300s which are open for sale.
Source: Cirium Dashboard