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Who's Who in Low Cost Aviation

Carrier: Adam Air
Headquarters: Indonesia
Founded: 2003
Destinations: 26
Bases: Jakarta
Owners: Suherman Family
Listed: Yes
Online Booking: Yes
Website: http://www.flyadamair.com
Fleet B737-300 4
B737-400 8
B737-500 1
A320 30 on order
B737-200 6

Overview - Adam Air

Full speed ahead for Indonesian upstart

Indonesias Adam Air has charted a growth record that mirrors that of its home countrys civil aviation sector. Launching operations in late 2003 with two B737s, the carrier now has a fleet of 19 of the type, serving 24 domestic routes, as well regional cities Singapore and Penang. Adam Air signalled its intention to continue growing and join the regions big leagues with its February 2006 order for 30 A320s.

The carrier, named for its 25 year-old chief executive Adam Suherman, does not disclose its performance figures, but claims to have been profitable since its first year in business. In recent months, the airline has mooted numerous growth strategies, publicly announcing its interest in equity cooperation deals with both Qantas and Singapore-based LCC Tiger Airways, its intention to undertake a 20% listing in 2008 (likely on the Singapore Stock Exchange).

It has also spoken of its intention to use Singapore as a second hub, connecting the city-state with such regional destinations as Bangkok and Hong Kong. In the meantime, it will continue its regional growth out of Indonesia, citing its intention to operate Bali-Perth services in the near future.

Outlook bright for aggressive carrier, provided …

Adam Air has ridden the wave stimulated by Indonesias aviation liberalisation and growing economy. If it continues to concentrate on that, it should find ample profitable uses for its future fleet of A320s. A move to open a major facility in Singapore, however, would place it in difficult competition with numerous established players – both network and low cost carriers. The airline may find it has bit off more than it can chew…


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Other Adam Air News

Indonesia's Bhakti consortium pulls out of Adam Air over safety issues

Indonesia's Adam Air looks to expand fleet to 50-60 aircraft within five years

Indonesia's Bhakti Investama acquires 50 pct stake in Adam Air

Indonesia's Adam Air to pay compensation over vanished aircraft

Adam Air of Indonesia selects 30 Airbus A320s for fleet modernisation

 

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