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AWAIR Suspends Flight Operations

Says Cutthroat Fare Competition As the Reason and Vows to Be Back Soon.

(2/25/2002) AWAIR - PT Air Wagon International one of Indonesia's recent start-up carriers announced that it would suspend all flight operations from March 8 until June 1, 2002.

Flying with leased aircraft, AWAIR says the suspension was the result of unhealthy price competition in the marketplace and that they would utilize the 3 month hiatus to upgrade operational systems and undertake staff training programs.

AWAIR commenced flight operations on June 22, 2000, initially using Airbus A310 equipment, upgrading to A320 jets in late 2001. The airline presently operates three different routes between Jakarta - Denpasar (Bali); Jakarta - Surabaya; and Jakarta - Medan.

In a related development, the Director General of Air Communications announced last week that 7 new airlines have declared their intention to commence domestic and international flight operations.

Details on equipments and routes are still sketchy, but the new airlines names have been announced: Alatief Alair International; Asia Avia Megatama, Bali International Air Services; Nusantara International Services; Rusmindo Internusa, Indonesian Airlines Avi Patria; and Mataram Airlines.