Indonesia's Ministry of Transportation expects the number of air passengers in Indonesia to exceed 100 million in 2014, a 15 percent growth from this year's estimated 90 million air passengers. Air traffic in Southeast Asia's largest economy is growing rapidly. From 2012 to 2013, passenger numbers grew at least 19 percent (from 60 to 90 million), while the total number of flights increased from 566,000 in 2011 to 684,000 in 2012. This robust growth necessitates investments to safeguard comfort and safety in Indonesia's aviation sector.

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Indonesia Investments uploaded the company profile of Indonesia AirAsia in the Indonesian Companies section. Indonesia AirAsia, unit of Malaysia's AirAsia, is a private company that engages in low-budget airline services in Indonesia. Although small compared to Lion Air (the dominating force in Indonesia's low cost segment), Indonesia AirAsia posts good growth in the region's most prospective air travel market. In the second quarter of 2013, its total number of passengers increased 33 percent (yoy) to 1.92 million people.

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The aviation industry in the Asia-Pacific region has shown robust growth in recent years. This region is one of the world's fastest growing regions in terms of air travel. In the next 20 years, an average annual seven percent growth of air traffic is expected. Indonesia, the current engine of economic growth in Southeast Asia and one of the largest economies in the Asia-Pacific, contains a burgeoning middle class that is increasingly using airplanes for domestic as well as international transport.

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Indonesia's Ministry of Transportation has issued a temporary moratorium on the issuance of permits for the establishment of new airlines in Indonesia. A spokesman of the Ministry said that airports will become too crowded if more applications are approved. Overcrowded airports will result in more flight delays and entails risks for safety. An increase in flight frequency of already established airlines is still permitted. The Ministry is also concerned that if more permits are issued, current rife competition between airlines will intensify.

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Indonesia's Ngurah Rai Airport on the idyllic island of Bali is now the country's largest airport in terms of passenger capacity. Being newly renovated, it can handle 25 million passengers per year. As such, it has surpassed Soekarno-Hatta International Airport, located just outside Jakarta (Java), and the new Kuala Namu airport in Medan (Sumatra), which have passenger capacities of 22 million and 8.1 million respectively. However, after renovation of terminal three at Soekarno-Hatta will be finished, Ngurah Rai is to lose its top spot again.

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Garuda Indonesia is the most renowned airline of Indonesia. The company, which received four stars from Skytrax, provides both domestic and international flights (passengers and cargo). In recent years, Garuda has experienced a remarkable transition from being banned to fly to the Eurozone towards becoming a world-class airline that is acknowledged by international critical acclaim. Although Garuda is Indonesia's top class airline, it taps the low-cost aviation sector through its subsidiary Citilink Indonesia.

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State-owned airline Merpati Nusantara Airlines will sell between 30 and 35 percent of its shares to domestic or foreign investors. The government feels the need to sell a stake as the airline has a debt of about IDR 6 trillion (USD $603 million). Most of this debt, about IDR 4 trillion, is held in Indonesia (government and state-owned enterprises). As such, the company is in need of new funds to restructure its business model. Last year, the airline carried 2.1 million passengers.

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Citilink Indonesia, the low-budget unit of Garuda Indonesia, announced its intention to conduct an initial public offering (IPO) in 2015 by offering 30 percent of its stocks to the public. The Indonesian budget airline also plans to expand its fleet-size to 50 airplanes. However, before an IPO can be conducted, the company said it should improve its (financial) performance first. In 2012, Citilink Indonesia recorded an USD $28.4 million loss on operating revenues of USD $73.4 million.

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Citilink Indonesia, the low budget carrier of national airline Garuda Indonesia, expects to transport around 7.8 million air passengers in 2013. This constitutes a sharp rise compared to last year's result of 3.8 million passengers. The airline, which handles 140 flights per day to 22 Indonesian cities, expects the increase to be in line with the growth of its armada to 29 aircrafts in 2013 (including 22 new Airbus A320 planes). These types of aircrafts are designed to serve short or middle-long distance flights.

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A Lion Air airplane, with flight number JT 904, that flew from Bandung (West Java) to Bali crashed into the sea just a few dozen meters away from the runway at Bali's International I Gusti Ngurah Rai Airport (which is located directly next to the sea) in Denpasar. Of the 101 passengers only one passenger is in critical condition, others have sustained minor injuries. According to sources, the aircraft did not touch the runway but completely overshot it.

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In 2017 Indonesia's Transportation Ministry allowed the opening of 83 new flight routes (commercial civil flights), consisting of 58 domestic routes and 25 international routes. There are two reasons why the government encourages the opening of new routes: (1) to make the remote areas of Indonesia less isolated, and (2) to strengthen inter & intra regional transportation.

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Good news for Indonesia's aviation industry and Indonesian airlines. After a nearly decade-long ban, the US aviation regulator (Federal Aviation Administration, or FAA) finally allows Indonesian airlines to enter US airspace again. The ban was imposed in 2007 due to safety concerns. The FAA announced on Monday (15/08) that the safety status of Indonesia's aviation industry was upgraded by one notch to category 1. This opens doors for Indonesian airlines to serve flight routes to the USA as well as code shares with US airlines.

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The spotlights are again turned on low-cost carrier Lion Air, Indonesia's largest privately-held airline that controls about 40 percent of the air passenger market in Indonesia. The airline, owned by Rusdi Kirana (one of the richest Indonesians), has again disappointed thousands of passengers due to delayed flights. This time flight delays were caused by Lion Air pilots going on strike. It is worth to zoom in on this case and to take a look at which Indonesian airlines are most reliable in terms of departure punctuality.

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Indonesian flag carrier Garuda Indonesia, the nation's top class airline, targets to fly 27.5 million people in 2016, up 10 percent year-on-year (y/y) from the airline's total number of air passengers last year. Passenger growth is supported by the arrival of five new wide-body airplanes in 2016. The company, listed on the Indonesia Stock Exchange but majority-owned by the Indonesian government (60.6 percent), is particularly eager to boost the number of international passengers.

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In line with the implementation of the ASEAN Economic Community (AEC) by the end of the year, the ASEAN Open Skies policy (also known as the ASEAN Single Aviation Market) should become fully effective later this year. The ASEAN Open Skies policy, a key component of the AEC, involves the multilateral agreement of all ten ASEAN countries to unite their skies into a single aviation market (hence liberalizing rules and regulations to a large degree) in a bid to boost the region’s economic growth.

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Sementara Indonesia masih sedang berdukacita atas hilangnya nyawa para korban dalam sebuah kecelakaan pesawat militer di Medan (Sumatra Utara) pada hari Selasa (30/06), Kementerian Perhubungan Indonesia mengancam untuk membekukan izin operasional 13 maskapai penerbangan komersial Indonesia yang dibebani oleh ekuitas negatif. Ekuitas negatif ini meningkatkan kekuatiran mengenai praktek keamanan maskapai penerbangan ini. Kementerian Perhubungan Indonesia meninjau laporan audit keuangan dari 60 perusahaan pengangkut lokal. Maskapai-maskapai penerbangan ini memiliki waktu sampai 31 Juli 2015 untuk menyesuaikan neraca keuangan mereka.

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The number of air passengers in Indonesia will most likely fail to meet its growth target in 2014. Based on government data, the number of air passengers in Southeast Asia’s largest economy reached 47.5 million in the first eight months of 2014, a 5.82 percentage point growth from the same period last year. However, the Indonesia National Air Carrier Association (INACA) initially targeted annual passenger growth in the range of 12-15 percent for 2014. Amid slowing economic growth, people’s purchasing power has declined.

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The mysterious disappearance of Malaysia Airlines flight MH370 on Saturday 7 March 2014 reminds us that flying does not go without risks. Although it is popularly said that flying in an airplane is safer than driving in a car - and despite the fact that Malaysia Airlines is a world-class airline - it is worth taking a closer look at the current state of aviation in the Asia Pacific, Indonesia in particular, as air traffic in the Asia Pacific has been booming (and budget airlines mushroomed) in recent years due to the expanding middle class.

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Airport Council International (ACI), the only global trade representative of the world's airports, stated that Indonesia’s Soekarno-Hatta International Airport, located just outside the capital city of Jakarta, has climbed one spot and is now ranked the world’s 8th busiest airport in terms of passenger numbers (over the year 2013) and was the 4th busiest airport in the Asia Pacific after Beijing Capital International Airport, Haneda International Airport (Tokyo), and Dubai International Airport.

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On Friday 10 January 2014, the government of Indonesia opened Halim Airport for scheduled commercial flights. Previously, the only airport that served these types of flights around Indonesia's capital city of Jakarta and surrounding towns was the Soekarno-Hatta International Airport (Soetta), located in Cengkareng (Banten). However, the amount of daily passengers at Soetta has exceeded its capacity. Based on data from Airports Council International, released in 2013, Soetta is the world's tenth busiest airport.

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