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Indonesian aviation rocked by turbulence in 2019
Dark clouds seemed to have hit the Indonesian aviation industry throughout 2019, with high airfares and operational and financial problems preventing airlines from taking off. A glimmer of hope came from the growing maintenance, repair and overhaul (MRO) industry.
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Technicians of Garuda Maintenance Facility (GMF) Aero Asia check the condition of a Garuda Indonesia's Airbus A330-300 plane at a Soekarno-Hatta Airport hangar. (JP/Jerry Adiguna)
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ark clouds seemed to have hit the Indonesian aviation industry throughout 2019, with high airfares and operational and financial problems preventing airlines from taking off. A glimmer of hope came from the growing maintenance, repair and overhaul (MRO) industry. Here is a recap of the past year in aviation:
High airfares
In January 2019, passengers vented frustration over domestic airfare hikes. Airline ticket prices increased 30 to 50 percent, even after the end of a long holiday season. Airlines said they would struggle to survive if they sold cheaper tickets.
The government made several attempts to bring down airfares while trying to accommodate airlines’ aspirations. In May, the Transportation Ministry issued a ministerial decree that pushed down the price ceilings for airfares by 12 to 16 percent.
In June, the ministry issued three policies: lowering airfares for low-cost carriers (LCCs) on designated routes and schedules; giving fiscal incentives for airlines; and calling on all stakeholders in the aviation industry to help reduce cost components to ease the burdens of airlines.
However, these efforts did not seem to work in bringing down airfares. By the end of the year, issues over high airfares still persisted.
In a meeting with the Transportation Ministry, stakeholders and the House of Representatives Commission V on Nov. 25, House members demanded an explanation on the stubbornly high airfares, especially for destinations in eastern parts of Indonesia.
