State-owned airport operator Angkasa Pura II expects higher revenue this year on the back of increasing passenger numbers and the establishment of new businesses, an executive said.
AP II expects the number of passengers to increase by 11 percent to 103.34 million people this year following the opening of new terminals at several airports, including Supadio International Airport in Pontianak, West Kalimantan; Depati Amir Airport in Pangkalpinang, Bangka-Belitung; and Silangit Airport in North Tapanuli, North Sumatra.
The company implemented a new policy last year that allows airlines to offer extra flights beyond regular airport operating hours. It also opened new terminals at Soekarno-Hatta International Airport in Tangerang, Banten; Husein Sastranegara International Airport in Bandung, West Java; and Sultan Thaha Airport in Jambi – which boosted passenger numbers by 12 percent to 94.63 million last year, compared to a year earlier.
More passenger also contributed to AP II's rising revenue, which increased 18 percent to Rp 6.65 trillion ($498 million) in 2016.
"Efficiency, effectivity in the fourth quarter 2016 had helped AP II to achieve revenue [...] higher compared to its initial target of Rp 6.57 trillion," Angkasa Pura II president director Muhammad Awaluddin said in a statement issued on Sunday (29/01).
Most of the revenue in the January-December 2016 period – Rp 4.03 trillion to be exact – came from the aeronautical business while other business, such as property, advertising and cargo, contributed Rp 2.62 trillion.
AP II formed new subsidiaries, namely Angkasa Pura Propertindo and Angkasa Pura Kargo, last year in a bid to increase revenue from non-aeronautical businesses.
"We hope that the non-aeronautical business will contribute 50 percent or more to the company's total revenue in 2018," Awaluddin said.
Angkasa Pura Propertindo is preparing to operate hotels at Soekarno-Hatta airport and Kualanamu International Airport in Medan, North Sumatra, while Angkasa Pura Cargo will develop cargo and warehousing operations at Soekarno-Hatta airport this year.
The airport operator's other subsidiary, Angkasa Pura Solusi, will focus on the information and communications technology business.
AP II has set a target to increase its revenue by 25 percent to Rp 8.25 trillion this year.
Source: http://jakartaglobe.id/business/angkasa-pura-ii-expects-more-passengers-in-2017-plans-to-expand-side-businesses/
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