Indonesia's Airport Operators Leaning to Cargo Services as Number of Passengers Plunge

Indonesia's state-owned airport operators Angkasa Pura (AP) I and II are shifting their revenue source to cargo and warehousing services as restrictions limit air passengers.

AP II sees potential for growth in air cargo, despite a decline in cargo volume at its airports during the pandemic.

Airfreight volume at its 19 airports fell 34 percent year-on-year to 79,556 tons between April 1 and June 7. However, 34,000 tons of that cargo traffic was from between May 7 and June 7 alone.

According to AP II president director Muhammad Awaluddin, while the cargo volume is lower than normal, the shipment volume of 34,000 tons shows that business prospects remain stable and have growth potential this year.

Awaluddin added that there are no restrictions for air cargo during the pandemic and that commercial airlines are modifying their fleets with freighters to take in more airport cargo.

AP II is consolidating cargo loads from several sub-agents to be shipped using a chartered carrier, which it aims to double from twice to four flights per week. It also reduced operational costs at storage facilities by 40 percent and has provided warehouse facilities for airlines.

Domestic air passengers in Indonesia plunged 85.18 percent while international air passengers fell 98.26 percent y-o-y.

Meanwhile, AP I cited revenue diversification by establishing an airport ecosystem that includes a cargo village to survive during the pandemic. It aims to depend less on aircraft and passenger traffic.