The Transportation Ministry said on Thursday it had set a one-year deadline, as required by law, for new airlines to have a minimum of 10 aircraft
he Transportation Ministry said on Thursday it had set a one-year deadline, as required by law, for
new airlines to have a minimum of 10 aircraft.
“This tolerance is given as purchasing aircraft is not simple. Besides, aircraft are very expensive,” Transportation Ministry spokesman Bambang Ervan said.
“The ministry will issue a decree this month about the tolerance period.”
Law No. 1/2009 on aviation obliges an aviation company to have at least 10 aircraft – five owned and five rented — to start their operation in the country.
Air Transportation Ministry Director General Herry Bhakti Gumay said that should an airline not be able to commit to having at least 10 aircraft within one year, the ministry would recommend that the airline seek a merger.
“Should they not merge with another airline, we would lower their status from a scheduled flight airline to a non-scheduled one,” Herry said.
The lowering of status from scheduled to non-scheduled or chartered flights also meant lowering the airline’s Air Operator Certificate (AOC) from AOC 121 to AOC 135.
There are several airlines starting operations or re-opening in the country this year including Mandala Airlines and Pacific Royale.
Mandala halted its operation in January 2011 due to financial problems and will likely be rebranded as Tiger Mandala. It has shown a commitment to have 10 airplanes by the end of 2012, Herry said.
“We will keep monitoring Mandala for one year until it has 10 airplanes,” he added.
At present, Mandala is still in the process of re-obtaining the AOC, but once it gets the certificate, Mandala can initially operate with its two airplanes, currently parked in Singapore, Herry said.
Saratoga Capital controls 51 percent of Mandala, Tiger Airways owns 33 percent, and other creditors hold the remaining 16 percent through a debt-to-equity swap.
Pacific Royale will begin flight services at the end of February, managing director Samudera Sukardi said.
He said Pacific Royale would have two Fokker 50s and two Airbus A320s by the end of this month.
Three more Fokkers and two more Airbus A320s will arrive in May while the last aircraft, an Airbus A330, would arrive in December, he added.
“We will operate at Soekarno-Hatta International Airport’s terminal 3,” he said. (nfo)
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