My Jakarta: Adil Hakim, Private Aviation Consultant
Zack Petersen | March 16, 2010
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364043Smart business, targeting a very specific market untouched by anyone.
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When is the last time your flight took off from Soekarno-Hatta on time? Never? Meet Adil Hakim.His business card says it all: ‘Spokesperson and Aviation Consultant.’ He’s articulate, calm and convincing, qualities needed to sell seats on private jets. If you’re not convinced you can afford it, just give Adil a few minutes and he’ll have you sipping champagne on your way to Singapore before you know it.
So are you a travel agent for really rich people?
I guess you could say that [laughs]. Whatever mission they deem critical, we offer the service. We cater to the need of a particular niche market in the aviation industry, they call it ‘general aviation,’ and it offers customers flexibility and high mobility. To be in three to four different places in one day, no commercial airline can offer that type of service.
So you’re catering to CEOs?
It could be anyone; you don’t have to be a tycoon. It could be a CEO or it could be someone on the street, you’d be surprised. In the United States, 85 percent of private jet travelers are owners of small- to medium-sized companies, and Indonesia should be similar.
How so?
I’m looking at the market in general. I’m looking at the big picture that Indonesia is growing and that to develop its outer regions people must head to those places on a regular basis. There are limits to what the commercial airlines can offer and that impedes the overall growth of the outer regions of Indonesia. And that’s where the growth is. I’m not saying customers will fly JetRoyal all the time, but it is a supplemental tool for a particular niche market, say for a highly mobile group of investors for example.
Can people really afford such a service?
Air transportation in Indonesia grew fivefold in the years 2000-08. People have switched from maritime transportation and now enjoy a higher standard of living. Those who used to take the train or boat home for Lebaran now fly and everybody has a cellphone or two. But this change has happened among the wealthy, too. People who used to fly commercial airlines are now considering private flights.
What about the stigma of private jets being wasteful and bad for the environment?
There is this stigma because it’s seen as wasteful and excessive, but for many it increases productivity. The general aviation industry contributes to the economy and creates highly skilled jobs. Additionally, if the autonomous regions are planning growth of 5 to 7 percent, how are they going to build their cities at such a fast-paced growth without the efficiency, flexibility and mobility that private jet services offer? People building power plants or foreign investors wanting to look at an area the local government wants to promote might be prevented from traveling to those areas because maybe they’re afraid of taking commercial airlines or because they aren’t served by regular flights. Thus, you lose an opportunity. Sure you have Garuda and Lion Air on the other side of the spectrum, but here we offer a niche service. Say, for example, someone is bringing in high-value investors or maybe needs to have a meeting with a business development team en route and to save time and money on layover accommodation, then this is the option that we offer such clients. Private flights are a tool, not a luxury for some people. It’s a necessity. The transportation industry should offer all available options and then the market can decide which is appropriate. JetRoyal caters to the specific needs of a market.
How can the government help?
On the infrastructure side, local governments and communities can participate in the general aviation industry. This has happened in the US with regional airports and the mom-and-pop small airstrips run by fixed-base operators. These small airports and FBOs stimulate the local economy through the traffic that comes through their facilities. In Indonesia, this has been ignored. Too much emphasis is placed on major airports, yet having aviation facilities in small towns would improve the economy in areas that might otherwise be neglected. The investment required to establish the small airports and FBOs that serve smaller general aviation aircraft such as private jets is just a fraction of the investment required for major airports. I’m hoping that the government can look at general aviation as a contributor to the bigger economic picture and will help to build efficient and practical small airports in cities across the country so that these places don’t have to wait 10 years to get an air service.
When was the last time you flew commercially?
I usually fly commercial. See, you don’t need to travel privately all the time. It’s supplemental, it depends on the mission. I went on a private jet to the Singapore Airshow and sometimes I travel privately for special missions but that’s not the norm. Basically, private flights are like an additional tool in your arsenal when you need it.
If I want to fly with you, how do I go about it?
JetRoyal offers a membership scheme where you buy a block of 25 flight hours. Currently we have the Embraer Legacy 600, a medium large jet category. People seem to like the big cabin, like bringing their friends and colleagues along. It’s like an Alphard in the sky.
So how much does it really cost?
Let’s say you want to go to Singapore, a very common destination, that would cost $23,000 to $25,000 for a round trip. It works out at $2,500 a person per round trip, but a business-class or first-class ticket [on a commercial airline] costs over $1,000. People pay a premium for the time, the flexibility. Come on, we all splurge sometimes. There’s no guilt in that.
Adil Hakim was talking to Zack Petersen.
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