Below is a list with tagged columns and company profiles.

Today's Headlines Aviation

  • Indonesian Culture: Annual Mudik Tradition ahead of Lebaran Has Begun

    The annual mudik tradition has started in Indonesia. The term mudik refers to the exodus of Indonesian workers from the cities back to their hometowns ahead of Lebaran (the Indonesian name for Idul Fitri) which starts on 28 July 2014. Lebaran, a national holiday (from 28 July to 1 August), marks the end of the holy fasting month of Ramadan and is usually celebrated at people’s places of origin, implying that Indonesian cities become more-or-less deserted for one week. In the week up to Lebaran people start to mudik.

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  • Future of Malaysia Airlines Uncertain after Two Boeing 777 Accidents

    The second major disaster involving an airplane of Malaysia Airlines within the time span of a few months can lead to bankruptcy of the debt-ridden airliner. On Friday (18/07), one day after the crash of the Boeing 777, which was presumably shot down by pro-Russia separatists in Ukraine, shares of the company slid 11 percent on the Malaysia Stock Exchange. This year so far, its shares have declined 36 percent. Malaysia Airlines has not been able to post a profit in the last three years amid fierce competition and the high oil price.

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  • Malaysia Airlines Boeing 777 Crashed in Ukraine; Presumably Shot Down

    A Boeing 777 airplane (flight number MH17) of Malaysia Airlines, flying from Amsterdam (the Netherlands) to Kuala Lumpur (Malaysia) has crashed in eastern Ukraine about 50 kilometers from the borderline with Russia on Thursday (17/07). Reportedly, the airplane was shot down. Supporting evidence for this assumption is debris and body parts that have been found spread across a wide area (more than 15 kilometers wide), indicating an explosion at a high altitude. The Boeing carried 280 passengers and 15 crew members. All are feared dead.

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  • Skytrax: Cathay Pacific World’s Best Airline, Garuda Indonesia 7th

    Skytrax: Cathay Pacific World’s Best Airline, Garuda Indonesia 7th

    Skytrax, the United Kingdom-based consultancy airline and airport review and ranking agency, named Hong Kong’s Cathay Pacific as the world’s best airline in the World Airline Awards this week at the Farnborough International Airshow in England. Cathay Pacific snatched the title from Emirates that had to settle for a fourth place this year. The ranking is based on surveys involving 16 million air passengers, evaluating the products and services of full-service as well as budget airlines. Garuda Indonesia was ranked seventh.

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  • General Electric Eyes Establishment of a Regional Hub in Indonesia

    US multinational conglomerate General Electric (GE) is exploring possibilities to establish a regional business hub in Indonesia due to the promising perspectives of both Indonesia and other countries in Southeast Asia. Currently, Indonesia is the largest market for GE in Southeast Asia, accounting for roughly 30 percent of the company's revenue in this region (but Indonesia's regional peers are developing rapidly as well). However, GE Indonesia CEO Handry Satriago said that human resources form a problem.

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  • New Jet Fuel Surcharge in Indonesia Reduces Low-Cost Airline Ticket Sales

    Ticket sales of domestic low-cost carriers in Indonesia have declined up to 20 percent after the Transportation Ministry implemented new (higher) surcharge fees for airline tickets on 26 February 2014. The new fuel surcharge was needed to offset the negative influence of sharp rupiah depreciation in 2013, which led to rising jet fuel prices, as well as low passenger rates amid the current low season. The Indonesia National Air Carrier Association (INACA) had previously requested for the new surcharge as Indonesia's aviation industry was in jeopardy.

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  • Indonesia Investments' Newsletter of 5 January 2014 Released

    On Sunday 5 January 2014, Indonesia Investments released its latest newsletter. This free newsletter, which is sent to our subscribers once per week, contains the most important news stories from Indonesia that have been reported on during the last seven days on our website. Most of the topics involve economic matters such as an update on Indonesia's inflation and current account deficit, initial public offerings (IPOs) in 2014, car sales, the Financial Services Authority (OJK) and Indonesia's aviation industry.

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  • Air Passengers in Indonesia Expected to Exceed 100 Million in 2014

    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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  • Company Profile of Indonesia AirAsia: A Growing Indonesian Low-Cost Carrier

    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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  • Aviation Industry in Indonesia: What are Indonesia's Top Airlines?

    Aviation Industry in Indonesia: What are Indonesia's Top Airlines?

    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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Latest Columns Aviation

  • Investment Projects on Offer in Indonesia: Airport Development & Management

    Investment Projects on Offer in Indonesia: Airport Development & Management

    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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  • Ban on Indonesia's Airlines Entering US Airspace Lifted

    Ban on Indonesia's Airlines Entering US Airspace Lifted

    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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  • Outrage on Lion Air Strike, What are the Reliable Indonesian Airlines?

    Outrage on Lion Air Strike, What are the Reliable Indonesian Airlines?

    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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  • Garuda Indonesia & Citilink Seek Global & Domestic Expansion

    Garuda Indonesia & Citilink Seek Global & Domestic Expansion

    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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  • Indonesia's 8th Stimulus Package: Import Tax, Oil Refineries & One-Map Policy

    Indonesia's 8th Stimulus Package: Import Tax, Oil Refineries & One-Map Policy

    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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  • Aviation Industry Indonesia: ASEAN Open Skies, Challenges & Opportunities

    Aviation Industry Indonesia: ASEAN Open Skies, Challenges & Opportunities

    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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  • Negative Equity: Indonesian Airlines’ Operating Permits May Be Suspended

    Negative Equity: Indonesian Airlines’ Operating Permits May Be Suspended

    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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  • Aviation Industry Indonesia: Air Passenger Traffic Growth is Slowing

    Aviation Industry Indonesia: Air Passenger Traffic Growth is Slowing

    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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  • Strong Growth of Air Travel but How Safe Are the Airlines of Indonesia?

    Strong Growth of Air Travel but How Safe Are the Airlines of Indonesia?

    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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  • Jakarta’s Soekarno-Hatta International Airport World’s 8th Busiest Airport

    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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