Garuda Indonesia (GIAA), one of Indonesia's biggest airlines, posted a 100 percent increase in net profit to US $145.4 million in 2012 from US $72.7 million a year earlier. Operating profit of the company rose 82 percent to US $110.8 million from US $64.2 million in 2011. These numbers were supported by a 19.6 percent increase in passengers from 17.1 million in 2011 to 20.4 million last year, while its seat load factor rose to 75.9 percent from a previous 75.2 percent.

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State-controlled airline Garuda Indonesia plans to raise capital through a rights issue in semester II of this year. Funds assembled through this issue will be used to expand the company's fleet. In 2011, Garuda issued 30 percent of its shares on the Indonesia Stock Exchange (IHSG) although the House of Representatives (DPR) had in fact approved up to 40 percent. The remaining 10 percent will thus be sold this year.

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Several Indonesian media reported that a deal has been reached between the governments of Singapore and Indonesia that will foresee in an increase of flights (accompanied by a lowering in fares) between Singapore and several big cities in Indonesia (including Jakarta, Surabaya and Medan). The route Jakarta-Singapore is one of the busiest airline routes in Asia, mainly due to business traffic because of (growing) trade and investments flows between the two countries.

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Angkasa Pura I, the state-owned firm that provides airport management services in the central and eastern region of Indonesia, offers foreign and domestic private investors the opportunity to operate and develop several airports (in cooperation with Angkasa Pura I) across Indonesia: the Sultan Aji Muhammad Sulaiman Airport in Sepinggan (Balikpapan, Kalimantan), Lombok Praya Airport on Lombok, and - in the pipeline - Kulon Progo Airport in Yogyakarta (Java).

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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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On Monday (21/12) the government of Indonesia unveiled its eight economic stimulus package. This latest edition of the series of packages - all aimed at boosting economic growth - involves three policies. Firstly, the scrapping of import taxes on 21 categories of airplane spare parts. Secondly, fiscal and non-fiscal incentives for the development of oil refineries. Thirdly, the central government will streamline and harmonize land-acquisition for infrastructure development across the country through the new "one-map policy".

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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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While Indonesia is still mourning for the lives that were lost in the military plane crash in Medan (North Sumatra) on Tuesday (30/06), the Indonesian Transportation Ministry threatens to suspend operating permits of 13 Indonesian airlines that are being plagued by negative equity, raising concerns about these airlines’ safety practices. The Transportation Ministry reviewed audited financial reports of 60 local carriers. These airlines will have time until 31 July 2015 to adjust their balance sheets.

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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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