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View all search resultsThe government has long sought after new airlines, hoping to improve competition and lower airfares in the country’s duopoly aviation market. Flag carrier Garuda Indonesia and Lion Air are estimated to serve between 70 and 80 percent of domestic passengers annually.
The country's latest passenger airline launched domestic flights on Sept. 27, starting with seven flights per week on the Jakarta-Surabaya route and followed by flights connecting Jakarta to Balikpapan in East Kalimantan and to Denpasar in Bali.
The Indonesia National Air Carrier Association (INACA) has proposed that the government remove a price ceiling on economy class tickets for commercial airlines, allowing market mechanisms to determine airfares.
Indonesian airlines have expressed optimism that passenger figures on domestic routes are on track to get back to the pre-pandemic level in the first quarter of 2024, nearly a year faster than previously estimated.
INACA secretary-general Bayu Sutanto said on Oct. 9 that the job law would boost investment in the country’s aviation industry, which is especially important today when demand is low and the aircraft seat load factor (SLF) hovers at around just 40 percent on average.
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