Indonesian govt picks Changi-led consortium to manage Komodo airport

The Indonesian government has awarded the development and operatorship of Komodo Airport - Labuan Bajo to a consortium led by Cardig Aero Services (CAS) comprising Changi Airports International (CAI) and Changi Airports MENA. CAS is a provider of air transportation support, food solutions and other related services in Indonesia.

Meanwhile, CAI is an investor, consultant and manager in the global aviation market while Changi Airports MENA is a wholly-owned subsidiary of CAI. In a press statement, CAS thanked Indonesia's government contracting agency (PJPK) for choosing the consortium.

"Upon notice of award issued by PJPK, the consortium will finalise the cooperation agreement in accordance with the Kerjasama Pemerintah dan Badan Usaha process. We look forward to the opportunity to jointly unlock the full potential of the airport together," it added.

A tourist island, Labuan Bajo is home to the renowned Komodo dragons. Quoting finance minister Sri Mulyani Indrawati, Channel NewsAsia reported that this is the first time a consortium including a foreign company has been awarded the operatorship of an Indonesian airport. According to Channel NewsAsia, the length of operatorship is 25 years and about US$86 million will be invested over five years by the consortium to expand the airport.

This includes extending the runway to make room for larger planes that are likely to fly directly from countries such as Japan, China and India, transportation minister Budi Karya Sumadi said. He added that the consortium is responsible for growing the airport's capacity by over six-fold to handle four million travellers. According to Sumadi, the consortium is estimated to spend about IDR5.7 trillion over the next five years on its operation, while the Indonesian government will offer a guarantee through a state-owned financial company.