"Our challenge is to win a profi table share of the aircargo pie in the Asia- Pacifi c region," said Harsha Edwana Joesoef, CEO of the RPX Group, adding that the carrier also hoped to expand its activities to other destinations. "If we don’t try, we will never become a real player in this industry." After successfully solidifying its image as a leading domestic logistics operator, RPX is determined to play a much bigger role, following the example of its long-term partner FedEx Express. RPX has been the licensee of FedEx inIndonesia since 1985.
Starting its maiden flight on October 20, 2001, RPX Airlines has been pioneering Indonesia’s scheduled air cargo services by successfully connecting major cities with high economic potential. To meet demand, the airline has taken some crucial measures, including the acquisition of three additional Boeing B727-200s, plus expanding codeshare agreements with airlines in the region. Within the next four months, the carrier will take delivery of additional aircraft from US aircraft manufacturer Boeing, bringing the total fl eet to six B727-200s.
Joesoef described the B727-200F as an ideal aircraft for Indonesia’s air cargo industry, which requires shortmedium range planes. But he said that smaller freighters with a capacity of 2-3 tonnes will be needed for feeding services to connect 140 locations in 58 Indonesian cities. RPX will decide on future feeder aircraft after concluding feasibility studies, Joesoef added. With the arrival of new freighters by the end of this year, the carrier aims to start code-sharing services with Thailand’s Sawasdee Airways, which Joesoef said was an opportunity to participate in the booming aircargo industry of Thailand and neighbouring countries. The code-share arrangement with Sawasdee will soon be fi nalised, he added. Connecting Indonesia and China, RPX Airlines will also enter into a codeshare arrangement with fl ag carrier Garuda Indonesia, which is expected to start next month.
Meanwhile, Joesoef described the co-operation with Japan Airlines, which started more than a year ago, as "a milestone in breaking into the Asian market". Under JAL’s Batavia Express service, both carriers are code-sharing on fl ights from Tokyo and Osaka to Jakarta with Denpasar as a transhipment point. Under the agreement, RPX’s air waybill is used from Jakarta to Denpasar, and vice versa, while JAL’s air waybill is used from Tokyo or Osaka to Denpasar, and vice versa.
Since 2001, RPX Airlines has played a signifi cant role in offering freighter services from Indonesia to anywhere in the world via Singapore, through special arrangements with Air France, Air New Zealand, Cargolux, Japan Airlines, Nippon Cargo Airlines, Qantas Airways, Swiss WorldCargo, Lufthansa, KLM Royal Dutch and others. It operated fi ve fl ights a week on the Jakarta-Singapore-Jakarta sector, Surabaya-Singapore-Surabaya, and Makassar-Singapore-Makassar.
However, due to inadequate cargo loads from Singapore on the return fl ights, the services to Singapore have been reduced. In order to secure more Indonesia-bound loads, Joesoef said he would implement a progressive strategy by code-sharing with more airlines. "I am optimistic that RPX Airlines will have its place in this fast growing market in the region," Joesoef said, who added that other subsidiaries are fully supporting this mission.
The 15 percent annual growth rate of RPX – post recovery of the domestic air cargo industry in 2003 – combined with new policies on the acceleration of exports and imports, form a solid basis, which will ensure payload continuity from Indonesia to Asean destinations.
Starting 22 years ago from the garage of Joesoef’s house in Jakarta, the RPX Group, which currently includes Republik Express (RPX Airlines), RPX Clearance, RPX Air Forwarding, RPX Warehouse, RPX Freight, RPX Domestic and Repex Perdana International (FedEx), the company has grown to be one-stop logistics provider, occupying the 17-storey RPX Building in South Jakarta.
RPX Airlines currently handles daily shipments of over 200 tonnes to various destinations. Financially, the airline contributes 15 percent to the Group’s total US$80 million annual revenues, while 50 percent of overall revenue comes from international express services (as licensee of FedEx). FedEx started direct fl ight to Jakarta in 1998 deploying an A310 freighter with a 35-tonne capacity.
The growing trend of cargo handled by RPX has prompted the construction of two transit warehouses at Jakarta’s Soekarno-Hatta International Airport (SHIA) to facilitate the process of exports and imports. The warehouses are operated by the RPX Warehouse subsidiary, which was awarded ISO 9001:2000 in 2004.
Increased deliveries to various points in Indonesia prompted the set up of RPX Domestic on May 11, 1999, which is now claiming a 30 percent stake in Indonesia’s logistics industry.
Domestic growth has been further strengthened since the launch of RPX Authorised Ship Center (ASC) last year, a partnership programme with local small-to-medium enterprises. The number of ASCs has jumped to 300 this year, while an additional 200 are expected by next year. Though most domestic cargo is handled by passenger airlines, RPX Airlines has an average stake of 10 percent of the total domestic airfreight business. However, it dominates the chartered freight activities in the country.
The airline operates daily flights from Jakarta to Balikpapan, Makassar, Surabaya and Denpasar, while a ‘huband- spoke’ system has been developed in Kalimantan, with Balikpapan serving as hub for cargo from Pontianak, Banjarmasin, Tarakan, Bontang, Samarinda, Sangata and some other cities. Typical cargo loads include garments, shoes, perishable goods (vegetables, fi sh, fruits) and market sensitive items (electronics, handphones, computers, fashion).
Among RPX’s fi ve top customers are PT. Henkel Indonesia (since 2005), Hewlett Packard (2003), Sonny Ericsson (2003), Adidas (1990s), and Microsoft (2005). Joesoef said that the Group is expanding the RPX brand among express and logistics customers. "We would like Indonesians to say ‘RPX is my choice’," he noted. Only time will tell, whether that slogan will ultimately also be used by customers in the Asia Pacific.
