BUSSINESS PLAN

TABLE OF CONTENTS

CHAPTER 2 BUSSINESS PLAN

2. BUSSINESS PLAN........................................................................................................................................................................................ 2.1-1

2.1 FOREWORD ...................................................................................................................................................................................................................... 2.1-1

2.2 ABSTRACT........................................................................................................................................................................................................................ 2.2-1

2.2.1 Chartered flights and description of their activities ....................................................................................................................................... 2.2-1
2.2.2 Characteristics and development strategy .................................................................................................................................................... 2.2-1
2.2.3 Archipelago insight, HUB Port, long-haul operation, feeder-flight operations .......................................................................................... 2.2-2
2.2.4 Transportation and Labor force ....................................................................................................................................................................... 2.2-2
2.2.5 The society, reality, science, multidimensional and social fact .................................................................................................................. 2.2-3

2.3 CONCEPT FOR DEVELOPMENT OF AIR TRANSPORTATION IN PAPUA ........................................................................................................ 2.3-1

2.3.1 Commuter Operation and Fleet. ..................................................................................................................................................................... 2.3-1
2.3.2 Short Range Operation and Fleet ................................................................................................................................................................... 2.3-2
2.3.3 Medium Range Operation Fleet ...................................................................................................................................................................... 2.3-2
2.3.4 Code Sharing Operation with existing Indonesian National Air Operator. ................................................................................................ 2.3-2
2.3.5 Regional and International Airline Operation (Future Plan). ....................................................................................................................... 2.3-2

2.4 BUSINESS ACTIVITY ...................................................................................................................................................................................................... 2.4-1

2.4.1 BASE OPERATION .......................................................................................................................................................................................... 2.4-2
2.4.2 FUTURE DEVELOPMENT .............................................................................................................................................................................. 2.4-3
2.4.2.1 Training Center .................................................................................................................................................................................. 2.4-3
2.4.2.2 Maintenance Repair and Overhaul (MRO) .................................................................................................................................... 2.4-3
2.4.2.3 Flying Academy ................................................................................................................................................................................. 2.4-3

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 BUSSINESS PLAN
FOREWORD

2. BUSSINESS PLAN

2.1 FOREWORD

Indonesia was an island country geographically which has many

island surrounded by the sea, to the territorial waters, land and air
with boundaries, rights, and sovereignty established by the Act,
where in order to achieve national goals and in order to realize the
unity of the Republic of Indonesia and strengthen national resilience
needed transportation system support national economic growth,
regional development and strengthen the country's sovereignty.
Refer to this condition, transportation become the most important part
in economic development for every region in Indonesia.

In Eastern part Indonesian, air transportation becomes the main role for economical development and people welfare, mainly caused
by geographical and nature condition of that island.

Sea and land transportation in Papua presently were not fulfill the community demand yet, and it was not meet with the people need,
because of that, air transportation the only one used for transport and travel around inland Papua. Presently for cargo and passengers
transportation, mainly served by only 2(two) or 3(three) domestic national air charter operator companies which operated in Papua
with limited aircraft fleet and limited performance capability, others transported by religious missionaries which also operated in
Papua.

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 BUSSINESS PLAN
FOREWORD

As result, with present difficulties condition, air transportation become expensive and consequently expenses cost for living in Papua
become higher and unreachable for some indigenous people, especially if compared with present condition of other island in western
or middle part of Indonesia, and economical growth were very slow in Papua.

Air Transportation is part of a national

transportation system that has the characteristics
of being able to move in quick time, using high-
tech, capital-intensive, reliable management, and
require guarantees optimum safety and security,
need to be developed and the potential role of
effective and efficient, as well as help create a
pattern national distribution of stable and dynamic.

We are part of the nation who work as professional pilots with experience of working
in various national and international airline company in collaboration with national
entrepreneurs who have the vision and mission as well as the same ideals and the
desire to play a role in the development of Indonesia achieve national goals of the
Unitary Republic of Indonesia.

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 BUSSINESS PLAN
ABSTRACT

2.2 ABSTRACT

2.2.1 Chartered flights and description of their activities

Chartered flights serve as a supplement to scheduled flights, the operation of which depends
on the demands different from the regular schedules in route, frequency as well as capacity.
The growth of chartered flights is determined by many interests, but it is clear that factors of
economic growth as well as political, social, cultural, defence, and security aspects have
their impacts on chartered flight activities.

2.2.2 Characteristics and development strategy

The growth of airlines in the post-deregulation and flight liberation (Open-Sky) policy in
Indonesia is relatively high. Airlines and charter flights are in the increase. According to
year 2003 data, there were 34 scheduled airlines and 45 charter airlines. Within the
framework of regional development in line with the autonomy policy, the existence of
airlines is inevitably needed. Charter flights are the most suitable alternative to carry
passengers and goods in areas difficult to reach by other modes of transport, even by
airlines, due to limited capacity of airports. Compared to airlines, charter flights have
different characteristics, such as having no regular schedules, contract system of tariffs,
and types of aircraft which are dominated by rotary wing and turbo prop aircraft. The different characteristics must be supported
by different management, since the market is specific but has long term dimensions.

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 BUSSINESS PLAN
ABSTRACT

2.2.3 Archipelago insight, HUB Port, long-haul operation, feeder-flight operations

Indonesia archipelago as a maritime country has strongly believed the

importance of air transportation to connect its thousands of islands. To
realize the Archipelago insight, our basic concept of archipelago, the role of
the National Airlines must be dominant in South East Asia region. In
anticipating the era of globalization, since global liners have chosen
Singapore as the HUB Port in South East Asia, our National Airline must
change its strategic policy. The Indonesian Feeder Airline companies
must be at par with Regional Airline Operation. In order to be able to
compete with foreign airlines, the National Airline must be given strong support by the Indonesian Government.

2.2.4 Transportation and Labor force

One of the most important economic contributions of transportation is its
facilitation of the territorial division of labor or regional specialization of economic
activity. Without adequate and efficient transportation, each community or small
geographical area would be obliged to raise and produce everything needed to
survive. The adequate workers, their quality, and quantity are absolutely required.

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 BUSSINESS PLAN
ABSTRACT

2.2.5 The society, reality, science, multidimensional and social fact

The society consists of relations among people that make them united. Social exchange and mobility happens in every structure of
society. There are multi-dimensional facets in overcoming many social problems in social exchange. Science is the key to
understanding and making selfguiding community in social transformation.

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 BUSSINESS PLAN
CONCEPT FOR DEVELOPMENT OF AIR TRANSPORTATION IN PAPUA

2.3 CONCEPT FOR DEVELOPMENT OF AIR TRANSPORTATION IN PAPUA

Air Transportation Concept to be applied in Papua was Hub and Spoke Concept with 5 types of fleet and operation as follows
hereunder:

2.3.1 Commuter Operation and Fleet.

Hub Cities: Wamena, Nabire, Timika, Sentani, Manokwari, Sorong, Merauke, Fak Fak etc.
Serving for transportation passengers and cargo from the hub to small towns surrounding.

For example : Wamena to Ilu, Puncak Jaya, Mulia, Kanggime, etc

; Nabire to Enarotali, Mulia, Obano, etc; Timika to Nabire,
Enarotali, Obana, Mulia, Ilaga etc; Sentani to Wamena, Mulia,
Oksibil, Batom, Sarmi, etc; Manokwari to Bintuni, Babo, Anggi,
Merdey, etc; Sorong to Teminabuan, Ayawasi, Kambuaya,
Inanwatan, Fak Fak, etc; Merauke to Okaba, Ewar, Senggo,
Kamur, Mindiptanah, etc ; Fak Fak to Babo, Bintuni, Kaimana,
Tual, etc.

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 BUSSINESS PLAN
CONCEPT FOR DEVELOPMENT OF AIR TRANSPORTATION IN PAPUA

2.3.2 Short Range Operation and Fleet

Hub Cities: Merauke, Jayapura, Timika, Biak, Manokwari, Sorong, etc.

Serving for transporting passenger between major cities in regencies, such as Jayapura to Wamena, Merauke to Timika or
Wamena, Jayapura to Biak or Nabire or Timika, etc; Timika to Biak or Manokwari or kaimana etc; Sorong to Manokwari or
Kaimana or Ambon or Ternate, etc and other cities in regencies with short distances relatively.

2.3.3 Medium Range Operation Fleet

Hub Cities: Sorong, Manokwari, Biak, Kaimana, Timika, Jayapura and Merauke.
Serving for transporting passenger between major cities in regencies, such as Merauke to Timika or Jayapura back and
forth; Jayapura to Timika or Biak or Sorong back and forth; Sorong to Ternate or Manado or Ambon back and forth.

2.3.4 Code Sharing Operation with existing Indonesian National Air Operator.

2.3.5 Regional and International Airline Operation (Future Plan).

For future plan, perform and establish regional and international airline operation with inter link or interlines concept
operation application, cooperated with existing international or other domestic operator.

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 BUSSINESS PLAN
BUSINESS ACTIVITY

2.4 BUSINESS ACTIVITY

We serve charter flights in eastern Indonesia. Papua Province is one of the provinces in Indonesia with a total area of 319,036.05
km2 (123,180.51 sq mi), which has 29 districts are scattered and mostly located in mountainous areas. Therefore, air transport is
one of the indispensable mode of transportation in Papua.

The difficulty of the terrain conditions resulted in dependence on air freight transport, so this time various types of aircraft from
various countries have been operating in Papua.

However, the availability of air transport is still not able to meet the overall needs. With a spirit " Fly with the Heart " We came to
help develop Papua.

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 BUSSINESS PLAN
BUSINESS ACTIVITY

2.4.1 BASE OPERATION

- Nabire in operation planning as one of the base Operation. Cooperation has been done with PT. Ardrian

Paul Jaya Aviation (PT.APJA) as Agent Representative in Nabire.

Representative addresses in Nabire:

PT. Ardrian Paul Jaya Aviasi Jl. Medan Karang Mulia,Distrik Nabire, Kabupaten Nabire.

Briefing Crew Room Nabire Airport

Representative Office and Radio & Operation Room Nabire Airport

Crew Mess Nabire

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 BUSSINESS PLAN
BUSINESS ACTIVITY

2.4.2 FUTURE DEVELOPMENT

2.4.2.1 Training Center

To maintain and increase the capabilities and maintain qualified personnel in order to remain in
compliance with regulatory requirements that are needed training intensive and continuous, for
that much needed quality Training Center facilities.

Training Center can subsequently be used for the training of human resources both internal and
external.

2.4.2.2 Maintenance Repair and Overhaul (MRO)

Along with the company's fleet expansion plan and the anticipated increase in the
number of aircraft operating in Papua, the business development in the field of
Maintenance Repair Overhaul in Papua is very possible.

2.4.2.3 Flying Academy

To support the company's development program required pilot power regeneration.

Considering still lame flying school in the country's ability to develop a commercial pilot in
comparison with the development of the aviation industry, establish Flying School/ Flying
Academy is the next step of business development .

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