Many see Indonesia’s domestic market as the world’s last great aviation frontier. The world’s fourth largest country by population is made up of over 17,000 islands, fertile territory for both domestic and international services.
     Its economic growth and foreign direct investment forecasts are more than healthy and it boasts a stable democracy, which, while by no means perfect, remains something of a rarity in Asia. This enticing mix of political sobriety and giddy growth potential is attracting serious investment in aircraft by Indonesian operators, which have replaced their Chinese peers as the headline makers at major aviation shows in recent months.
     But amid all the optimism, a sobering story came to FlyingTypers’ attention from the shipping markets. It is worth re-telling here, before we all get too carried away by Indonesia’s blue-sky opportunities.
     One of the country’s financial pillars is its huge reserve of natural resources. Apart from coal, gold, and palm oil, an almost forgotten export is nickel ore. Each year, shipments of this cargo loaded in Indonesia account for a miniscule proportion of trade carried by the global fleet of some 8,000-plus bulk carriers. However, this one trade lane from Indonesia to China has accounted for the loss of four vessels and 66 lives in the last 18 months, turning on its head the downward trend of seafarer deaths in bulk carriers of the last three decades.
     We hear about the dangers posed by pirates almost constantly in media. So it is worth noting that just 16 seafarers lost their lives due to piracy across all ship types over 2010 and 2011, according to figures from watchdog International Maritime Bureau.
     The suspected reason for these 66 deaths and 4 vessel losses is that nickel ore can liquefy if loading is not supervised correctly. In effect, this turns the cargo into sludge once the ship sails. Simple tests of moisture content before loading can prevent liquefaction and there are more than adequate—mandatory—regulations available governing and guiding the safe handling of nickel ore. However, the loss of life continues on vessels that have recently loaded in Indonesia.
     The reason many shipping bodies believe this is happening is because Indonesia’s central authorities, in tandem with the shippers who have most to gain by a sailing not being delayed, are refusing to allow independent surveyors to measure the moisture content at load ports.
     Indonesia’s maritime authority and transportation ministry have given no justification or explanation for its failure to stop these deaths. Indeed, Indonesia’s authorities refuse to answer any queries on the loss of the vessels. Shipping organizations privately admit they are afraid of pushing Indonesia’s government too strongly for fear of making it even less inclined to improve safety at ports.
     The upshot is that nickel ore continues to be loaded unsafely, the shipping equivalent of flying an aircraft with a ticking bomb onboard.
     This failure to act by Indonesia’s authorities in the face of a clear and present danger is worth noting—the same criticism has previously been applied to the country’s aviation industry.
     So amid the hoopla of that recent Singapore Air Show where Lion Air, for example, announced that it had signed a $21.7 billion deal with Boeing for 230 short-haul 737 jets, the biggest commercial order in Boeing’s history, FlyingTypers stepped back and considered what the consequences of more planes in the sky would be in a country that likes to live so dangerously.
     As mentioned at the top, Tony Tyler, president director of IATA, said during his visit to Indonesia in September that the country could be the sixth-fastest growing market for international passengers.
     In 2014, Indonesia will rank as the ninth-largest domestic market and among the top 10 for international freight, according to Tyler.
     But just 7,000 pilots man Indonesia’s 57 airlines, which even the discredited transportation ministry (the same transport ministry that has failed to act over the nickel ore deaths) admits is not enough.
     Indonesia has long had one of the worst accident rates in Asia.
     Back in 2007, the U.S. downgraded the safety status of Indonesia's civil-aviation directorate, and the European Union put all the country's carriers on a list of banned airlines.
     The EU has now removed Garuda and some other carriers from its danger list after the carriers improved their safety procedures, but concerns remain, not least because the government’s safety officials are not known for rigor, the airports themselves are under-maintained, and many are already at operating over-capacity.
Indonesia is also one of the world’s worst performers in global corruption indices, a fact that allows safety procedures to be bypassed with some ease in all walks of life.
     IATA, which has frequently warned Indonesia about its safety record, said the country had 33 plane accidents between 2005 and 2010 and accounted for 1.4 percent of global traffic but 4 percent of accidents in 2010. Garuda is the only Indonesian carrier on IATA’s safety audit list of 372 international airlines.
     Lion Air, which has had frequent safety incidents including overshot runways and hard landings, recently saw three of its pilots arrested for testing positive for illegal drugs. One of its planes crashed in 2004 causing the death of 25 people.
     Mandala Airlines, like Lion Air, is also expanding to cash in on anticipated growth. Mandala is owned by Tiger Airways, with Singapore Airlines owning a 33 percent stake. Last year Tiger was banned from flying in Australia for five weeks by that country’s aviation regulator due to safety issues. Would Indonesian regulators be so stringent under the same circumstances?
     Another airline that has been eager to announce its intent to grow is Merpati, whose general manager was arrested on graft charges in late 2011. One of Merpati’s MA-60 aircraft crashed into the sea last year off the coast of Kaimana, West Papua, Indonesia, in heavy rain. All 21 passengers and four crew onboard were killed.
The loss prompted a major re-inspection of all MA60s in operation in Indonesia after an investigation revealed that the state-owned carrier’s purchase of the aircraft may have violated federal legal procedures. Since then the carrier has ordered 40 Chinese ARJ21-700s and 11 Boeing B737-400s.
SkyKing

Superstition gets SN Brussels to add an additional dot to its A319 tail, utilizing a stylized “B” with 14 dots instead of 13, which is perceived unlucky.

     Lufthansa holds 45 percent of the shares in SN Airholding, SN Brussels Airlines’ parent, and can acquire the remaining 55 percent each year in April; it elected to forego that step this year. In response to our questions, Geert Sciot, Brussels, Airlines Vice President External Communication, said:
     "We have indeed been confronted last week with several (wrong) media reports following on-going discussions between Brussels Airlines and the Belgian Government. The topic of these discussions is the current lack of level playing field and the high salary costs we are confronted with in Belgium. For your info: the difference between gross and net salary in Belgium amounts to 60 percent.
     "Our Chairman has clearly stated in the Belgian media (but this was unfortunately not picked up by international media) that we have no intention to relocate our staff. The only thing that has happened is that we compared the labor costs in Belgium with the labor costs in Luxemburg, UK, Ireland, and various other countries. Some media have this wrongly interpreted as an indication that we tend to reallocate staff.
     "We don’t ask state aid or financial support, the only thing our airline asks is that a level playing field is created.
     "The future of the airline is not in danger. Brussels Airlines has a healthy cash situation and the management has put a revenue-increasing and cost-saving plan in place to address the challenging economic situation the entire aviation industry is facing today. The fact that Brussels Airlines is adding 2 additional Airbus A 330 long haul aircraft to its fleets this spring and injects 30 million Euro in a new long haul cabin this year clearly underlines that we continue to invest."
     There is some historical precedent with what Pierre Godfroid, the chairman of the airline’s executive board in 2001, tried to do with Sabena in the nineties—trying to get lower wage agreements, but being refused. Suffice it to say that the brightness of Brussels Airlines’ future is under review.
     Well-informed sources tell FlyingTypers that Brussels Airlines was to renew their handling contract with Flightcare before the end of March; it has not been signed yet. It appears that, for the first time, Aviapartner has also responded to Brussels Airlines’ request for tender and it is believed to be much cheaper than Flightcare. Brussels Airlines could be taking advantage of this fact to put pressure on Flightcare’s offer. If they decided to change handling agents it would mean the probable demise of Flightcare, as Brussels Airlines is their major client.
Ted Braun

     JFK Air Cargo Day was held in New York City, and U.S. Navy Blue Angels F-18 Hornet fighter jets flew dress rehearsal above the Lady in the Harbor in preparation for “Fleet Week” next month, marking 100 years since USA handed the British a licking in the War of 1812.
     Often called the “Second War of Independence,” American freedom from foreign rule was made permanent despite the dominant British fleet, and the innovative, brilliant British Commander Philip Broke (pronounced Brook) (HMS Shannon) defeated and captured the U.S. Naval warship Chesapeake in a confrontation outside Boston Harbor.
     The battle lasted just 15 minutes, killing Chesapeake Commander James Lawrence, who fell uttering the famous, enduring phrase: “Don’t Give Up The Ship.”

     Last Thursday in New York, the JFK Air Cargo Association held their 13th Annual Air Cargo Day with displays and an open industry meeting and luncheon that hosted over 300 people, all in an effort to move the marble toward understanding issues from cargo screening to dealing with new technologies.
     “This year we cemented our position as perhaps the best one day air cargo expo in the world,” said ACA President Willie Mercado (Aer Lingus).
     The venue was Russo’s on the Bay located in Howard Beach, Queens just across the water from John F. Kennedy International Airport.
     If anybody recalled that Howard Beach was also once the home of the infamous hoodlums who used to think the cargo area of JFK was their own personal shopping mall, nobody talked much about it.
     Russo’s has in the 21st century taken on a new role as the de facto meeting ground for many organizations at JFK, as the airport that was once considered the greatest in the world cannot in 2011 boast a banquet facility or hotel capable of hosting large events.
     We were thinking about just how far down the quality of life for business executives at JFK has gone; it was IDL when we first arrived at the big airport.
     The people in air cargo at JFK are still great and as dedicated, hard working, and willing to work for the community as ever.
     The ACA meets every month (usually the third Thursday) at the JFK Hilton just across the street from the airport’s main runways and announces its events and guest speakers here: http://www.jfkaircargo.org

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RE:  Great Steak & Somerset Maugham In Kuala Lumpur

Geoffrey,

    Great article on the above venue. The first of many visits I made to the Coliseum was on my first trip to KL in 1972. The JAL Cargo manager in KL, Ismail Bin Ibriham, made sure that it was one of our stops. I might add that Ismail was a gentleman of the first order and one of, if not THE best, air cargo men for JAL worldwide.
      Our waiter was a wizened Chinese man of indeterminate age who was very efficient and fast. When I had my first look at the menu, I marveled at the vast array of soups that were available. I asked the waiter how they could have such a variety for every setting. He took me into the kitchen and pointed, with pride, at rows and rows of Campbell Soup cans on the shelves.
     The steaks, as you described, were fabulous, and at that time were from Australia.
     Every time I went back to KL, and there were many, Ismail made sure we went to the Coliseum. The other thing that struck me were the racks on the walls that were used by the Planters to hold their rifles and saddles when they came to eat back in the plantation days.
     Thanks for bringing back these memories of when travel had its rewards.

Regards,
Buz Whalen

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