T

ransportation Ministry director general for air transportation Suprasetyo said on Tuesday that fewer than half of the country'€™s scheduled airlines had submitted their 2014 audited financial statements, which were due on April 30, to the ministry

Among the airlines late in submitting their reports are budget carriers Indonesia AirAsia and Lion Air.

In February, the ministry issued Ministerial Regulation No. 18/2015, which obliged all airlines to submit audited annual financial statements by April 30, to ensure that airlines operate in accordance with the ministry'€™s safety and security standards.

Following the loss of AirAsia flight 8501 with all 162 people on board in December last year, Transportation Minister Ignasius Jonan took several steps to strictly enforce regulations, including the improvement of safety standards.

'€œThe ministry'€™s main purpose for instructing airlines to submit financial statements is to monitor and ensure that the country'€™s air transportation enterprises are in a healthy condition and have standardized services,'€ Suprasetyo said in a press conference.

Suprasetyo said that all 19 scheduled airlines operating in the country had submitted their 2014 financial statements but only eight had submitted audited reports.

Those that have submitted audited statements are national flag carrier Garuda Indonesia, its subsidiary
Citilink Indonesia, PT Travel Express Aviation Service, Transnusa Aviation Mandiri, Aviastar Mandiri, Kalstar Aviation, ASI Pudjiastuti Aviation and PT Jatayu Gelang Sejahtera.

Suprasetyo said the ministry had allowed Lion Air and Indonesia AirAsia to submit their audited financial statements by June 30.

If the carriers failed to comply, the ministry might impose administrative sanctions, fines or report them to the Financial Transaction Reports and Analysis Centre (PPATK), Suprasetyo said.

Indonesia AirAsia corporate secretary Audrey Progastama Petriny said the airline had submitted its 2011 and 2012 financial statements to the ministry. She said the airline had not submitted the 2013 financial statements and that the airline would be ready to submit both the 2013 and 2014 financial statements in June this year.

When asked why the airline had not submitted either the 2013 and 2014 financial statements, Audrey said they were still being audited, without elaborating further.

Indonesia AirAsia is planning an initial public offering (IPO) in the second quarter of 2016.

Lion Air public relations manager Andy M. Saladin said that he was unable to comment on the matter.

Suprasetyo was reluctant to provide a synopsis of the financial state of the country'€™s air transportation sector, saying the ministry was still evaluating the situation.

He said the ministry would in the future provide guidance for airlines that were in financial difficulties.

Garuda Indonesia is currently the only publicly listed air operator in the country. The firm booked net losses of US$373 million in 2014 '€” compared to net profit of $11.2 million in 2013 '€” as foreign exchange losses and rising costs squeezed its revenues.

Recent data from the Center for Asia Pacific Aviation (CAPA) showed that out of 18 publicly listed airlines or subsidiaries and affiliates that reported financial results in Southeast Asia, only seven were in the black.

Garuda Indonesia was among the worst performers ranking second from bottom above Thai Airways, which recorded $523 million in operating losses, the data showed.

In addition to the audits required of airlines, the Transportation Ministry has also asked for audits of all airports across the country, following an unlawful runway infiltration at an airport in Riau on April 7. Airport operators are required to fulfill recommendations from the audit at least three months after the results are published.