Licenses for Eleven Airlines Revoked: Indonesia

It is definitely cutthroat this airline business in Indonesia. The national carriers of which there are many are undercutting each other on fare prices and as such are not up to scratch in the areas most important and that being of its customers.

Mohamad Iksan Tatang, Director General of Air Transportation at the Transportation Department the government has revoked operating licenses of eleven national airlines from the first half of 2005 to the end of first semester this year. The eleven airlines include three scheduled commercial airlines and eight commercial chartered airlines according to Tempo Magazine.

The government revoked the operating licenses because these airlines had never submitted any progress report on the companies' condition. "They are also difficult in procuring aircraft and employees" Tatang said during an interactive dialog of the Flight Law in Jakarta.

I sure would like to know which airlines got the chop!. One good thing though is that the Transportation Minister has issued a policy forbidding national airlines to purchase aircraft more than 20 years old. Most airlines can only supply planes more than the length of usage time because they are cheaper

In addition to cancelling the operating licenses of eleven airlines the government is monitoring eight scheduled commercial airlines and three inactive commercial chartered airlines. Those eleven airlines are requested to continue submitting progress reports on their preparation and ability to re-operate and if no reports are submitted then their operating license will be revoked.

According to Eddy Wibowo, Director of Air Transportation, three scheduled commercial airlines have been processing the requirement to re-operate. The three airlines are Star Air, Air Paradise International and Bourag Indonesia. "Air Paradise International and Star Air target to operate by the end of year" he said.