Posts: 184
Joined: Fri Feb 23, 2007 9:23 pm

LCC’s In Developing Countries. Lessons?

Thu Mar 08, 2007 3:12 pm

Indonesia’s air transportation problems have been brought into sharp focus this year.

What lessons can Indonesia learn from other developing nations where aviation has expanded equally rapidly? While Indonesia has its own unique ‘issues’ I’m sure there are parallels that can be drawn with other countries.

A fellow traveller said to me recently: “Years ago, the only people travelling by plane here were those wearing nice shoes. Now everyone flies”. That kind of sums it up. There is now an expectation that ordinary people can afford to travel by air. The market for low cost aviation is huge, whereas that for full service domestic flights has not really expanded for years. Remember that 200USD per month is a white collar wage here. Less than 1% of the population take home more than 500USD per month (Bank Indonesia figures).

How can Indonesia keep travel affordable and safe? Do the two have to be mutually exclusive?
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Joined: Mon Nov 15, 1999 4:51 am

RE: LCC’s In Developing Countries. Lessons?

Thu Mar 08, 2007 6:20 pm

Quoting GFFgold (Thread starter):
Do the two have to be mutually exclusive?

No. The costs or wages aren't the biggest problems in the countries with the worst safety records; Indonesia, Congo and Nigeria.
There are many shining examples of efficient and safe low costs carriers in developing countries, like Air Asia, Deccan Air, GOL. They make use of labor costs which are cheaper then in Europe or the US combined with the high education level in their country to make flying affordable.
The problem with the unsafe countries is that corruption, nepotism and the egos prevent a safety culture. Mistakes are hidden or denied, people don't seem to CARE or put procedures working to warrant the safety.
nobody has ever died from hard work, but why take the risk?
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Joined: Wed Aug 29, 2001 8:47 pm

RE: LCC’s In Developing Countries. Lessons?

Thu Mar 08, 2007 6:43 pm

Here's something straight out of an ex Adam Air employee (Ops)... And that person's not me.

"I wonder how long it will take them to realise that it is cheaper in the long run to keep the planes maintained than it is not to maintain it, deal with the schedule disruptions, rebookings, having people throwing bricks at our windows, and do ad hoc maintenance with time pressure?"

*Note: Long run = 12 - 24 months ! Yes! That short!

It was estimated that not maintaining it gives a nicer initial cashflow, but those very rough calculations turns out to be about 10% more expensive not to maintain than if you do maintain it, taking into account all the disruptions, bla bla bla, and also, loss of customers.

The rest of the issues, MEA-707 covered it...

So, if we can afford travel now, we can actually afford safer travel! Because sooner or later, the costs of ignoring safety piles up... and it won't be a cheap figure either.

When losing situational awareness, pray Cumulus Granitus isn't nearby !
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Joined: Fri Feb 23, 2007 9:23 pm

RE: LCC’s In Developing Countries. Lessons?

Fri Mar 09, 2007 8:44 am

I personally suspect that the 'blame culture' is a bigger player in these cases than corruption or poverty. I understand how things work on that level in Indonesia but know nothing about countries like Nigeria or Congo.

Is accepting responsibility counter-intuitive to the general mindset in those two countries as well?

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