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Jakarta Post

Mismanagement still dogs local airline operators

  • Nurfika Osman

    The Jakarta Post

Jakarta   /   Mon, March 11 2013   /  12:03 pm

Come fly with me: The apron at Soekarno-Hatta International Airport in Tangerang, Banten, West of Jakarta. JP/Arief SuhardimanWith a burgeoning middle class, Indonesia is among the most attractive markets for air transportation in the world, but local airlines are still unable to fully tap into the business potential due to poor management and a lack of a long-term planning.

The International Air Transport Association (IATA) predicts that Indonesia will rank as the world’s ninth-largest domestic market and among the top 10 for international freights in 2014.  

Local airlines are aware of the market potential. This year alone, a number of airlines — both well-established and newcomers — have signed contracts to procure new aircraft as part of their expansion plans to tap into the growing market, in which the number of air passengers is expected to reach 88 million...