Only 70 flights of 79,000 prior to pandemic now operating in Indonesia: Sri Mulyani

first_imgThe COVID-19 pandemic has hit Indonesia’s aviation industry hard as domestic and international flight numbers have dropped significantly amid social restrictions and a slump in foreign tourist arrivals.Finance Minister Sri Mulyani Indrawati has said only 70 flights are still operating of a total of around 79,000 before the virus outbreak.“All the airlines are currently under immense pressure,” Sri Mulyani told House of Representatives Commission XI overseeing financial affairs in a virtual meeting on Monday. “The airline industry lost income of Rp 207 billion [US$13.65 million] between January and February alone.” She said 240,000 flights were canceled globally between Jan. 23 and Feb. 18, adding that 12,703 domestic and international flights in the country were canceled in the January-February period.The global airline industry is expected to lose up to $314 billion because of the pandemic, according to estimates by the International Air Transport Association (IATA), as people choose to stay at home.Read also: Explainer: What’s allowed and what’s not in Indonesia’s ‘mudik’ banStatistics Indonesia (BPS) data showed on Monday that domestic passenger traffic dropped 24 percent in March from the corresponding period last year.This was the fewest foreign tourist arrivals since February 2009 as the coronavirus pandemic led to a slump in travel demand in March.There were 470,900 foreign visitors in March, down 64.11 percent from the same month last year, with tourist numbers from both China and Hong Kong falling more than 96 percent.Foreign arrivals have continued to decline since January, with 1.27 million arrivals in that month, and only 864,000 tourist arrivals in February.Topics :last_img read more

Asset managers look to boost headcounts despite weighing competition

first_imgAlmost two-thirds of asset management chief executives are expecting to increase headcount within firms despite weighing concerns over competition and regulation, research shows.Over 150 asset management chief executives responded to PwC’s annual survey of global CEOs, which showed a significant majority expecting growth in revenues over the next year.Additionally, 28% of respondents said they would be leading their firms into new industries, away from pure asset management, and 18% considering such an expansion in order to protect revenue growth.New tactics saw managers entering markets vacated by banks, providing real estate loans and corporate lending. One-fifth plan to grow business through cross-border mergers, with a further 29% opting for domestic tie-ups, PwC said, a higher proportion than other financial services.Despite short and long-term optimism about business growth, chief executives said fees had come under pressure from cheaper alternatives such as exchange-traded funds (ETFs).Almost half aimed to cut costs this year and 28% plan to outsource segments of their business in order to reduce the cost base.“Anxiety about competition disrupting their business models isn’t surprising at a time when active managers are losing market share,” the report added.Although looking to increase headcount, PwC reported 68% of asset management heads were ‘extremely’ or ‘somewhat’ concerned about the availability of key skills with over three-quarters planning to expand headcount in technology and risk management.“[Chief executives] are adapting to a changing world,” the report said.“They’re optimistic about growth in assets and revenues. Yet with competition mounting and regulatory disruption set to intensify, they’re looking to redefine their businesses, moving into new growth areas and leveraging digital technology.”Mark Pugh, UK asset management leader at PwC, said the market would be volatile over the next three years.“Future success in this sector will depend on attracting not only the most skilled investment professionals, but also talented people,” he added.“Compared with three years ago, asset management chief executives see both greater opportunities (65%) and greater threats (56%).”Optimism about revenue growth could stem from previous PwC research that showed global assets under management to exceed $100trn (€88trn) by 2020.The research said market share between institutional investors, retail and high-net worth individuals would not change dramatically, but growth from emerging and frontier economies would add to assets.,WebsitesWe are not responsible for the content of external sitesLink to PwC 2015 annual CEO surveylast_img read more