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CNK-2013-05 - TOP CITILINK AIRPORTS
CNK-2014-03-TO JOHOR BAHRU
Founded in 2001. Formerly a subsidiary of Garuda Indonesia (GIA), Citilink (CNK) was spun-off in mid-2011, and became a fully independent business entity, with its own management, branding and callsign. Domestic, regional & international, scheduled & charter, low cost carrier (LCC), operating passenger & cargo jet airplane services.
Indonesia (the Republic of Indonesia) was established in 1945, it covers an area of 1,904,569 sq km, its population is 210 million, its capital city is Jakarta, and its official language is Indonesian.
April 2001. Citilink (CNK) was founded as an experimental alternative, low cost carrier (LCC) subsidiary of Garuda Indonesia (GIA).
June 2011: Garuda (GIA) announced plans to spin-off Citilink (CNK).
July 2012: Citilink (CNK) became a fully independent business entity, with its own management, branding and callsign. (CNK) delivered much of its growth potential in the 1st half of 2012. Compared to the same period in the preceding year, (CNK) posted a +42% growth in passenger figures, up to 1.6 million.
(IATA) Code: QG. (ICAO) Code: (CTV).
(CNK) launched 14x-weekly, Medan (MED) to Batam (BTH) on July 5th.
September 2012: Citilink (CNK) launched 14x-weekly, Surabaya (SUB) to Lombok (LOP) on September 12th.
November 2012: Citilink ((IATA) Code: QG, based at Surabaya Juanda airport (SUB)) (CNK) has announced plans to initially base its 70Y seat turboprop airplanes at Batam Hang Nadim (BTH) and Lombok International (LOP) airports when it starts taking delivery of either ATR 72-600s or Dash 8-400s from the 2nd half of 2013. (CNK) currently expects to make a decision on a major turboprop order later this month. Balikpapan Sepinggan (BPN) and Makassar Hasanuddin (UPG) airports are reportedly next on the list. (CNK) mainly operates from Jakarta Soekarno-Hatta International (CGK) and Surabaya Juanda (SUB) airports.
December 2012: Citilink (CNK) launched 7x-weekly, Balikpapan (BPN) to Makassar (UPG), and 14x-weekly, Balikpapan to Denpasar (DPS) on December 26.
(CNK) will operate regional domestic routes with turboprops. It is evaluating ATRs and Dash 8-Q400s, which will be based in Batam (just south of Singapore) and Lombok (east of Bali).
January 2013: Citilink (CNK) closed 2012 with 3.8 million passengers transported (+49% change vs 2011).
Citilink ((IATA) Code: QG; based at Surabaya Juanda airport (SUB)) (CNK) increased its presence in Balikpapan (BPN), located on the east coast of Indonesian Borneo, on December 26th. (CNK) now offers 2x-daily services to Denpasar (DPS) and daily to Ujung Pandang (UPG). While there is no competition on the route to Denpasar, the capital of the province of Bali, as many as 5 airlines operate in the market from Balikpapan to Ujung Pandang on the Sulawesi Island: Lion Air (MLI) (21x-weekly frequencies), Indonesia AirAsia (ARW) (14x-), Garuda Indonesia (GIA) (11x-), Merpati Nusantara (7x-), Sriwijaya Air (7x-). Mixed narrow body equipment will be operated on each route.
Citilink (CNK) has finished its turboprop evaluation process and has announced that it plans to place an order for 25 ATR 72-600s with deliveries expected to start in September of 2013 and end in 2015. (CNK) previously already announced Batam Hang Nadim (BTH) and Lombok International (LOP) airports as its likely 1st bases for turboprop operations and has secured options for an additional 25 ATR 72-600s.
Citilink has placed a firm order with Airbus (EDS) for 25 A320neos. The contract, signed in December, represents (CNK)’s 1st direct purchase from Airbus (EDS). It follows an order placed in 2011 at the Paris Air Show by Garuda Indonesia for 15 A320ceos and 10 A320neos airplanes for operation by Citilink (CNK).
(CNK) currently operates a fleet of 12 leased A320s on its fast-growing domestic network.
March 2013: Citilink (CNK) launched 7x-weekly, Batam (BTH) to Pekanbaru (PKU) on March 11th.
April 2013: Citilink (CNK) is now #4 in Indonesia by capacity.
(CNK) launched all 7x-weekly, Jakarta (CGK) to Jambi (DJB) and Bengkulu (BKS) on April 3rd, Jakarta to Semarang (SRG) and Tanjung Pandan (TJQ) plus Makassar (UPG) to Ambon (AMQ) on April 5th, and Jakarta to Yogyakarta (JOG) on April 15. and Jakarta to Malang (MLG) on April 28th.
(CNK), which targets opening 100 new routes in 2013, launched services on the 700 km domestic route from Jakarta (CGK) to Malang (MLG) on April 28. Malang, sometimes called “Paris of East Java”, is the 2nd-largest city in the province and now served by Citilink (CNK) with daily frequencies. Arif Wibowo, (CNK)’s (CEO), said: “In 2012, we’re focusing on re-branding, starting from the introduction of the company’s new color, new livery, new logo, new uniform for stewardess, and other things. In terms of network development, we will be more aggressive in gaining the market, as we are no longer managed by Garuda Indonesia (GIA).” Competition on the route comes from Sriwijaya Air (SJA) and Garuda Indonesia (GIA), which serve the market from the Indonesian capital to Malang with 3x- and 2x-daily flights, respectively.
May 2013: Citilink (CNK) is a low cost carrier (LCC), headquartered in Jakarta, Indonesia.
(IATA) Code: QG. (ICAO) Code: CTV - (Callsign - SUPERGREEN).
Company slogan: "Your Right Link!"
Main Base: Juanda International Airport, Surabay, East Java.
Hub: Soekamo-Hatta International Airport, Jakarta.
Domestic destinations: 25.
* Java and Lesser Sunda Islands:
Bali (Ngurah Rai International Airport)
Bandung (Husein Sastranegara International Airport)
Jakarta (Soekarno-Hatta International Airport)
Lombok (Lombok International Airport)
Semarang (Achmad Yani International Airport)
Surakarta/Solo (Adisumarmo International Airport)
Surabaya (Juanda International Airport)
Yogyakarta (Adisucipto International Airport)
* Sumatra and Riau Islands:
Batam (Hang Nadim Airport)
Bengkulu (Fatmawati Soekarno Airport)
Jambi (Sultan Thaha Airport)
Medan (Polonia International Airport)
Padang (Minangkabau International Airport)
Pangkal Pinang (Depati Amir Airport)
Palembang (Sultan Mahmud Badaruddin II Airport)
Pekanbaru (Sultan Syarif Kasim II International Airport)
Tanjung Pandan (Buluh Tumbang Airport)
Balikpapan (Sepinggan International Airport)
Banjarmasin (Syamsudin Noor Airport)
Makassar (Sultan Hasanuddin International Airport)
Ambon (Pattimura Airport)
Citilink (CNK) has experienced mixed fortunes over the years, largely depending on the situation within Garuda (GIA)’s mainline operation.
Dynamic growth in Citilink (CNK)’s passenger figures reflects the situation in the Indonesian market as a whole. Some airlines (like Sriwijaya Air (SJA), which doubled its capacity this April compared to the preceding year) are booming. Others (like Batavia Air) are less fortunate and have disappeared from the market. This does not seem to scare (CNK)’s management, which has already started 12 new routes since last summer season, including April 28’s launch of services from Jakarta to Malang in East Java, and plans to reach a total of 100 new services this year.
In July 2013, Citilink (CNK) will operate services at 15 Indonesian airports, providing 157,000 weekly seats and 800 weekly frequencies. The 2nd half of 2013 will also see the arrival of the 1st 5 of the 25 ATR 72s ordered by Citilink in December 2012, and (CNK)’s entry into a number of smaller density markets is expected.
Before this happens, Indonesia’s 3rd-busiest airport, Surabaya, is (CNK)’s main center of operation, with 24% of weekly frequencies and 18% of capacity. However, Jakarta is a close contender, and as (CNK)’s route launching activity this year seems to revolve around the Indonesian capital with 6 routes launched in April already, it is likely that Surabaya will soon have to give up its leading position.
SEE ATTACHED - - "CNK-2013-05 - TOP CITILINK AIRPORTS."
See video "CITILINK INTRO" - -
October 2013: Citilink (CNK), the low-cost carrier (LCC) subsidiary of Garuda Indonesia (GIA), has launched daily flights on October 27th between Surabaya (SUB) and Kupang (KOE). (CNK) recently acquired its 1st sharklet-enhanced A320, bringing to 23 the number of narrow body Airbus airplanes it operates. Competition on this new 1,250 km route is provided by Lion Air (MLI) (3x-daily flights), Sriwijaya Air (SWJ) (10x-weekly flights), and Garuda Indonesia (GIA) (daily flights).
December 2013: Citilink ((IATA) Code: QG, based at Surabaya) (CNK) will delay the delivery of 2 A320-200s due next year as a result of the weakening Indonesian Rupiah (IDR) (CEO), Arif Wibowo told "Reuters." (CNK) had previously planned to take delivery of 10 A320-200s from Airbus Industries in 2014 but has now revised those plans to take only 8 planes next year, with the remaining 2 to be shipped in 2015. “We are revising our business plan for next year as the currency assumption also changed from previously below 10,000 rupiah per US dollar,” Wibowo said. Since January, the rupiah has lost 20% of its value against the greenback.
(CNK) currently operates 24 airplanes, to 1 country, 20 destinations, on 24 routes and 106 daily flights.
March 2014: Citilink (CNK), the in-house low cost carrier (LCC) of Garuda Indonesia (GIA), has introduced a new daily service to its network between Surabaya (SUB) and Johor Bahru (JHB) in Malaysia.
SEE ATTACHED - "CNK-2014-03-TO JOHOR BAHRU."
The 1,403 km service began on March 15th and will be operated by (CNK)’s fleet of A320s. Competition is provided by Indonesia AirAsia (AWR) who also operate daily flights between the 2 airports. This is Citilink (CNK)’s 1st international service from Juanda International Airport (Surabaya) and will use the recently opened Terminal 2 at the airport. A 2nd international route to Kuala Lumpur is due to launch in early April.
May 2014: Garuda Indonesia (GIA) incurred a significantly wider loss in 1st quarter 2014 as its international operation struggled and budget subsidiary, Citilink (CNK) chalked up more losses. (GIA) is at an important juncture as it seeks to raise cash to fund continued rapid expansion through a rights issue at the group level and a stake sale at (CNK).
Generating private equity or financial investor interest has been challenging given the difficult market conditions facing the aviation sector in Indonesia and SE Asia. But there is interest from potential strategic investors as other Asian airlines are keen to grow their presence in one of the region’s most dynamic and fastest growing markets.
Of all the options, a potential investment from the Singapore Airlines (SIA) Group is most intriguing. Indonesia is an important market for (SIA) and its low-cost carrier (LCC) affiliate, Tigerair (TGR). The (SIA) and Tigerair (TGR) investment in Indonesian (LCC) Mandala (MND) has backfired, but Citilink (CNK) has the scale and market position to potentially be more successful.
Malaysia Airlines (MAS)’ short-haul subsidiary, Firefly (FFM) and Garuda Indonesia (GIA)’s low-cost carrier (LCC) subsidiary, Citilink (CNK) have signed a cooperation agreement to expand their regional reach through their combined partner networks. The 2 airlines hope the agreement will enable them to further exploit growth in air traffic within the (ASEAN) region.
Firefly (FFM) (CEO) Ignatius Ong said the strategic partnership was formed to “expand our network and increase profitability. Unlike code sharing, this agreement will bring more traffic into Malaysia and help Firefly (FFM) grow as an airline with added revenues. Our plans for growth include entering 2ndary airports in Indonesia, such as Palembang and Padang, just to name a few.”
Citilink (CNK) President & (CEO) Arif Wibowo said: “This business expansion is an attempt to reach broader markets in the region, in line with our commitment to provide inter-connectivity between cities in the (ASEAN) market.”
Citilink (CNK) launched its 1st international flights in March this year, operating from Surabaya in East Java, Indonesia, to Johor Bahru in Malaysia. This month, it is launching services from Surabaya to the Malaysian capital, Kuala Lumpur.
Citilink (CNK) will add more flights out of Jakarta’s secondary Halim Perdanakusuma airport, starting June 1st. (CNK) will introduce a 3rd daily, Jakarta Halim to Semarang and 4th daily, Jakarta Halim to Yogyakarta services.
At the same time, it will move 2 out of its 9 daily, Jakarta to Surabaya services from the city's main Soekarno-Hatta International airport to Halim, together with the 4th daily, Jakarta to Palembang service. With this move, all flights headed to Palembang will depart from Halim.
The additional flights out of Halim is facilitated by parent Garuda Indonesia (GIA)’s transfer of slots to Citilink (CNK). (GIA) earlier noted that relocating some flights to Halim will have an impact on its airplane and crew ((FC) - (CA)) rotation. By remaining at Soekarno-Hatta, it could continue to provide a seamless connection for transfer passengers.
On flights out of Halim, Citilink (CNK) connects to Malang, Semarang, Palembang, and Yogyakarta.
Halim airport resumed commercial operations on January 10th, in a bid to alleviate congestion at Soekarno-Hatta. Both airports are managed by state-owned airport operator, Angkasa Pura II.
August 2014: 2 A320-214s (6224, PK-GQC; 6243, PK-GQD), (ICBC) Leasing leased.
August 2015: INCDT: A Citilink (CNK) A320-214 (PK-GQG, 2014-11) following a landing in heavy rain, skidded off a runway in western Indonesia on August 2nd, injuring 3 people and forcing the airport to shut down, according to a transportation ministry official and local media.
The Airbus A320 plane was performing flight QG970, carrying 184 occupants en route from Jakarta to Padang when it bounced off the runway upon landing, Transportation Ministry spokesman, Julius Barata told "Reuters."
"The plane blocked the runway, so the airport was closed," Barata added.
Citilink (CNK) is the budget arm of flag carrier, Garuda Indonesia (GIA).
Indonesia has a patchy aviation safety record and has seen 2 major plane crashes in the past year, including an AirAsia (ASW) A320 flight that went down in the Java Sea, killing all on board.
September 2015: Garuda Indonesia (GIA) low-cost carrier (LCC) subsidiary, Citilink Indonesia (CNK) plans to lease 9 new Airbus A320 aircraft to boost fleet numbers and regional service schedules.
The carrier already has a fleet of 34 Airbus A320s, flying to 24 destinations daily across Indonesia, and in 2013 placed an order with Airbus for 25 A320neos.
“For this year, we want +1 more aircraft, bringing our fleet total to 36 aircraft,” (CNK) Finance Director Hans Nugroho said, adding (CNK) plans to lease the remaining 8 through 2016. “We hope this is enough to meet the business development plan for Citilink (CNK) in the future,” he said.
Despite a slowdown in the rate of economic growth in Indonesia that has affected some other carriers, (CNK) said it is bullish about future prospects. It has pledged to spend $20 million on aircraft and support services through the remainder of 2015, and has committed to continue to increase the frequency of flights and open new routes to across its regional network.
Citilink (CNK) has launched 4 new services in the last 2 weeks, comprising Jakarta to Pontianak, Jakarta to Surabaya, Jakarta to Bandung and Jakarta to Palembang.
“We are optimistic that the future course of our economy will be increasingly improved,” Nugroho said.
(CNK), the (LCC) recently abandoned plans to start international services and pulled out of its initial international service (Surabaya to Johor Bahru) in March last year, after only a month of operation.
(CNK) gave no indication if the new aircraft would be used to re-awaken its international ambitions, although Changi Airport in Singapore and Perth, Australia were originally mooted as potential destinations.
September 2015: Indonesia’s aviation sector is ramping up protests over the country’s fuel supply monopoly, claiming surcharges of up to >20% above international rates for jet fuel.
Nearly all aviation fuel supply contracts are currently held by state oil company Pertamina, which supplies most local airlines with fuel at the country’s airports.
Led by Transport Minister, Ignatius Jonan, carriers including Indonesia AirAsia (AWR) and Garuda (GIA) offshoot, Citilink (CNK) are lobbying for an urgent revision of the current situation that local airlines claim is hurting business.
The Indonesian National Air Carriers Association (INACA) recently met with government trade ministers to discuss the situation, and is pushing for a rapid response. “Indonesian airlines have no other choices but to “squeeze” Pertamina, which holds the monopoly on jet fuel distribution,” Indonesia Air Asia (AWR) Board Commissioner Dharmadi said. “That is not healthy.”
Citilink Indonesia (CNK) Commercial Director, Hans Nugroho also spoke out against the current status quo, saying the Indonesian government should allow private oil supplies to provide alternative refueling options at Indonesian airports. “This should not be a monopoly. We need [the option] to buy elsewhere (and would also be happy to pay less),” he said. Nugroho added that given fuel amounts to some 50% of operating costs, any reduction or alternative would be “very helpful.”
Minister Jonan refuted Pertamina’s rationale for the increased prices (that it was subsidizing small airport costs by charging higher prices at major hubs, saying this was not part of its role). “Pertamina is not required to supply aviation fuel at small airports. And if they no longer provide fuel at smaller, government-operated airports, the private sector can supply them,” he said.
Both Citilink (CNK) and Indonesia AirAsia (AWR) said that a breakup of the fuel monopoly and potential drop in prices would be a “breakthrough in the cost structure” and allow better service to customers. “If the industry had a choice of price, that would mean ticket prices could also go down, and we could offer improved services,” Nugroho said.
A320-214 (6753, PK-GQL), Garuda (GIA) leased.
November 2015: Indonesian low cost carrier (LCC), Citilink Indonesia begins new daily, Jakarta to Manado, to Palu and to Tarakan, and increases flight frequencies on its Jakarta to Makassar, to Surabaya and to Lombok services to 3x-daily.
737-5U3 (28727, PK-GGC), ex-(N1786B), Garuda (GIA) leased.
December 2015: News Item A-1: The Indonesia Ministry of Transportation has begun inspecting Indonesian-registered Airbus A320 aircraft for potential issues with Rudder Travel Limiter Units (RTLU)s, following the findings on the fatal crash of Indonesia AirAsia (AWR) flight QZ8501 in December 2014.
The A320-200 crashed December 28, 2014 with 162 people on board, while flying through rough weather from Surabaya, Indonesia to Singapore.
Crash investigators attributed a causal factor to a faulty connection in the A320’s (RTLU).
“We will check the technical documents, the operation documents and the aircraft itself,” Ministry spokesperson, Muhamad Alwi said.
The Ministry has allocated 18 inspectors for the audit, which will cover at least 75 aircraft registered to local carriers, including AirAsia (ASW), Lion Air (MLI), Garuda (GIA), Citilink (CNK) and Batik Air (BTK).
The Ministry said it aims to complete all inspections by June 2016, but will allow aircraft operators to continue normal operations until then.
However, if any aircraft Maintenance Repair & Overall (MRO) logs indicate “repetitive trouble,” such as the warning error messages experienced by QZ8501 prior to the accident, the aircraft will be grounded, according to the Ministry.
Transport Minister, Ignatius Jonan recently described Indonesia’s aviation industry and its official oversight as having “failed to meet the standards of transport safety. A number of aviation accidents occurred in Indonesia during 2015; not a few of those accidents were fatal,” Jonan said at the opening meeting of the Ministry of Communications in Jakarta.
See video: Citilink vs Lion Air:
March 2016: 3 of Indonesia’s largest carriers (Batik Air (BTK), Citilink (CNK) and Lion Air (MLI)) are seeking a reappraisal of the European Union’s (EU) carrier blacklist next month. Of the country’s major carriers, only national flag carrier, Garuda Indonesia (GIA) has been granted full (EU) access since it was unlisted in 2009.
“An (EU) team will review our Directorate General of Civil Aviation (DGCA) oversight of the airlines, both in terms of organization and regulation,” Indonesian Director of Airworthiness and Aircraft Operations, Muhammad Alwi said.
He said the airlines would be subject to a safety and operations audit by a team of 7 (EU) inspectors that were scheduled to arrive in Indonesia in the last 2 weeks of April.
Alwi said the 3 carriers would be subject to ongoing checks via the (DGCA) for a period of at least 10 days, and the key issue would be the meeting of specific (EU)-specified standards to see a potential removal from the (EU) blacklist. “Our job is to meet all the targets, including the lifting of the flight ban for the airlines,” he said.
As of the end of December 2015, Indonesia has 57 airlines banned on the (EU) list.
The country has come under sustained criticism for the application of its safety standards over recent years, as both Transport Minister, Ignatius Jonan and airline body spokesperson, Andrew Herdman warned of a need to increase operational standards.
If the review is successful and the 3 carriers are removed from the blacklist, Alwi said the (DGCA) would put forward a further list of airlines for audit. “Going forward, we will propose 4 other operators including air charter carriers,” he said.
June 2016: Garuda Indonesia (GIA) is slowing its domestic expansion at its main full service brand, while accelerating domestic expansion at its low cost carrier (LCC) subsidiary – Citilink (CNK). (GIA) is considering the transfer of secondary leisure-focused domestic routes to (CNK) and for the 1st time, may start code sharing with its sister airline, which until now has focused on operating alongside (GIA) on trunk routes.
The Garuda group has tweaked its domestic strategy in response to both intensifying competition from the Lion (MLI) Group subsidiary, Batik Air (BTK), and an overall slowdown in domestic growth. (BTK) is a full service airline but has impacted Citilink (CNK) as its fares are generally priced only slightly above (CNK)'s fares, and significantly below those of Garuda (GIA). (CNK) slipped back into the red in (1Q) 2016 after 6 consecutive profitable quarters.
Citilink (CNK) is essentially now sandwiched between Lion (MLI), which generally has the lowest fares in Indonesia, and Batik (BTK). (GIA) believes that it needs to respond by expanding Citilink (CNK) rapidly, resulting in market share gains and lower unit costs, as it starts to achieve better economies of scale.
February 2017: A320-251neo (7466, PK-GTA), ex-(F-WWBB), Avolon leased.
March 2017: Garuda Indonesia (GIA) is establishing new-generation narrow body airplane fleets this year, as the group receives its 1st Boeing 737 MAX, and also adds Airbus A320neos. The parent carrier expects to take delivery of its 1st 737 MAX in November or December, (GIA) said. (GIA) has 50 of the airplanes on firm order and, at least initially, they will be used for fleet growth rather than replacement. Garuda subsidiary Citilink (CNK) has already received its 1st 2 A320neos this year.
May 2017: 2 A320-251neo (7587, PK-GTD; 7603, PK-GTE), ex-(F-WWDU), Avolon (AVL) leased and ex-(F-WWBB), (BOC) Aviation (SIL) leased.
July 2017: Turkish Technic (THY) secured an Airbus A320neo component pooling agreement with Indonesia's Citilink (CNK).
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CNK-A320 - 2013-06
CNK-A320-200 - 2013-12
CNK-A320-200 - 2014-01
1 737-5U3 (CFM56-3) (28727, PK-GGC), EX-(N1786B), GARUDA (GIA) LEASED 2015-11.
15 ORDERS A320CEO:
20 A320-200, CITILINK OPERATIONS.
1 A320-214 (PK-GQG, 2014-11 - - SEE INCDT REPORT - 2015-08).
1 A320-214 (3148, PK-GLI), EX-(JA207A), 2012-07.
2 A320-214 (6224, PK-GQC; 6243, PK-GQD), (ICBC) LEASING LEASED 2014-08.
1 A320-214 (6596, PK-GQK), (GIA) LEASED 2015-05.
1 A320-214 (6753, PK-GQL), (GIA) LEASED 2015-09.
2 A320-233 (839, PK-GLD, 2011-09; 892, PK-GLC, 2011-10), (DEA) LEASED EX-(HA-LPC), FOR CITYLINK OPERATIONS.
2 A320-251neo (7466, PK-GTA; 7587, PK-GTD), EX-(F-WWBB AND F-WWDU), AVOLON LEASED 2017-02.
1 A320-251neo (7603, PK-GTE), (BOC) AVIATION (SIL) LEASED.
25 ORDERS A320neo:
25/25 ORDERS (2013-09) ATR 72-600 FOR CITILINK OPERATIONS:
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CNK-3-AGUS IRIANTO - 2013-05
ARIF WIBOWO, PRESIDENT & CHIEF EXECUTIVE OFFICER (CEO).
AGUS ARIANTO, VP SALES & DISTRIBUTION.
HANS NUGROHO, FINANCE DIRECTOR.
HANS NUGROHO, COMMERCIAL DIRECTOR.