LOMBOK-AUSTRALIA DIRECT FLIGHTS?

The owner of OzJet, an Australian budget airline service, visited Lombok recently to discuss the possibility of
commencing the first-ever direct flights between Perth in Western Australia and Lombok.
Mr Pathma johnson met with members of the Lombok Hotels Association and other interested parties in Senggigi on
Monday, 30 June 2008 to discuess the viability of the flights and how the hotels could work in cooperation with
the airlines to provide packages to the potentially lucrative Australian market.

The airline operates several flights a week within Australia under the OzJet banner between Perth, Broome, Port
Hedland and Karratha on the west coast. In Indonesia, the company operates under the banner of Indo Jet, which
cirrently provides three flights per week between Perth and Denpasar, Bali. The company plan to increase this to four flights per week in September this year. In Australia, OzJet operates a fleet of Boeing 737-200 aircraft and provides both charters and Regular Passenger Transport (RPT) services.

The Boeing 737-200 Advanced aircraft, with a body length of 30.53m, is capable of landing at Lombok's existing
Selaparang Airport, which means that the company could conceivably start direct international flights immediately,
rather than wait for the completion of the new Lombok International Airport, schedule for 2010.

However, in order for the long-awaited dream of Lombok's hoteliers to become a reality, OzJet need some concessions and commitments from the Lombok government and airport authorities. Mr johnson said at the meeting that the airline
would need a minimum of 70 passengers per flight to break even. He plans to propose to the government that they
subsidie any deficit in minimum passenger numbers for the first six months of operations, until the Perth-Lombok
route is estabilished.

In addition, the company requires around three months of "lead time" for marketing the new service, and Lombok as a
destination, and would require financial help from the government for the costs of marketing and promotion.
should the government agree to sponsor the new international direct flights, Mr Johnson said that the service could
start operating as soon as January 2009. Mr. Johnson said that OzJet planned to start inially with one flight per
week to and from Perth, and add extra flights as demand grew. The Perth-Bali market is colosal, with Garuda Indonesia
flying between the two destinations ten times per week. Last month the airline reported that all flights between Perth
and Bali are already fully booked untill the end of the year and that Garuda plan to increase the flight frequency
to 17 flights per week in December 2008.

"The Perth market is huge and lucrative, but it's also price-conscious and Lombokwill need to compete with Bali,
"Mr Johnson told the meeting. "However, Lombok has huge potential for the Australians. Everything you can get in Bali,
you can have in Lombok...but the beaches and the environment here is much better".