Cardig Aero Services
Category: Best of the Best By : Ulisari Eslita Read : 666 Date : Friday, August 12, 2016 - 07:45:12


Toto Santiko Budi for Forbes Indonesia

PT Cardig Aero Services (CAS) provides aircraft ground handling services in 17 of Indonesia’s international airports, operated by its subsidiary Cardig Aero Destinations. Aside this main business, CAS has two other divisions: CAS Food, which provides catering services for airlines, mining companies, and other large businesses, and CAS Facility, which provides cleaning and facility management services for airlines, offices, hotels, malls, and industrial buildings. By division, 77% of the company’s revenues come from Cardig Aero Destinations, while CAS Food contributed 20% and CAS Facility was 3%, as per the first quarter (2015 full-year revenues were Rp 1.7 trillion).

The rapid growth of the aviation industry in Indonesia provides CAS with good prospects. “Because we serve airlines, our growth closely follows that of the industry at large,” says CAS Chief Executive Nurhadijono Nurjadin. “Indonesia’s aviation market has historically grown at double the rate of the country’s GDP. When Indonesia’s GDP increased 6-7% annually in years past, Cardig Aero Destinations was able to grow 12-14% per year.” Nurhadijono joined the company as CEO in 2011, but had worked previously as Cardig’s international CEO.

The government’s decision to provide visa-free access for 169 countries is good news for CAS, as it is encouraging more flights to Indonesia. The ASEAN Open Sky Agreement is another political development that may benefit the company. When fully ratified, all ASEAN carriers will be able to fly between member states tariff-free. “In theory, ASEAN Open Skies should be very good for us because more flights will enter Indonesia,” says Nurhadijono. “In reality, however, we see that Indonesia’s economy is slowing down. GDP growth was only 5% last year, so we won’t be able to grow as much as we did in previous years. Right now, we’re expecting less than 12% growth in our aviation division, but we’ll see.”

The company controls a large share in Soekarno-Hatta International Airport, where it handles 61% of cargo volume and services for many international airlines, including all carriers from Europe and the Middle East. However, lack of infrastructure and government restrictions present an obstacle to further growth. “Flights cannot increase until the government builds new terminals and runways. And even when these are built, there is no guarantee that we can expand because Angkasa Pura [the state-owned airport services company] may want to operate it themselves,” says Nurhadijono. Angkasa Pura operates its own services that compete with CAS.

Instead, Nurhadijono sees growth prospects in the non-aviation sectors. “I think we’ll be fine because we aren’t completely dependent on aviation. We also have a catering division, and we have seen good growth with in-town catering,” says  Nurhadijono. CAS Food is moving from catering to just airlines and is doing more for regular companies, including increased demand from the expanding manufacturing firms such as Toyota, which outsources its catering to companies like CAS.



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