Close
Bali Discovery Tours: Homepage
Bali Hotels, Bali Villas and Bali News from balidiscovery.com
Home Bali Contact Bali Practicalities Bali News Bali Services Bali Transportation Bali Sports Bali Excursions Bali Villas Bali Hotels
Home · News · Quick! Quick! Hatch us Some Airplanes
Bali Hotels, Bali Villas and Bali News from balidiscovery.com
Bali Hotels
Bali Villas
Special Deals!
Packages
MICE Handling
Bali Excursions
Culinary - Dining
Guided Tour
Bali Spas
Bali Sports
Diving
Golf
Bali Transportation
Car Rental - Selft Drive
Private Jet Charter
Bali News
Bali Services
Bali Practicalities
Bali Contact
Bali Career
Home
 
Bali Update
Subscribe to our free weekly newsletter!
 
PATA header
PATA Gold Award 2007
Bali Update
PATA Gold Award Winner 2007
 
Bali Contact
Bali Discovery Tours
Komplek Pertokoan
Sanur Raya No. 27
Jl. By Pass Ngurah Rai,
Sanur, Bali, Indonesia

Tel:
++62 361 286 283

Fax:
++62 361 286 284

U.S.A. Fax:(toll free)
1-800-506-8633

U.K. Fax:
++44-20-7000-1235

Australian Fax:
++61-2-94750419

24h:
++62 812 3819724

Bali Discovery

SITE PATA ASITA
Bali News

Quick! Quick! Hatch us Some Airplanes

Many Indonesian Airlines Facing Closure Unless they Grow Their Fleets to 10 Aircraft Before January 2012 Deadline.


Bali News: Quick! Quick! Hatch us Some Airplanes
Click Image to Enlarge

(11/1/2010)

A number of Indonesian airlines are facing real difficulties in fulfilling the coming legal requirement to operate a minimum of 10 aircraft. Transportation laws in Indonesia require Indonesian air operators to either own or rent a minimum 10 aircraft before a deadline of January 12, 2012, or risk losing their air operating certification.

The Secretary-General of the Indonesia National Air Carriers Association (INACA), Tengku Burhanuddin, claims many of his members are unable to meet the 10 plane requirement due to the a worldwide shortage of viable aircraft and the current lack of available credit facilities needed to acquire significant additions to the fleets.

As reported by Bisnis Indonesia and according to data provided by the Ministry of Transportation, the are currently 16 registered national air carriers operating in Indonesia. Each of these companies are required under the law to have at least five fully owned planes and five rented planes in operation by the 2012 deadline date.

In fact, only seven of the sixteen Indonesian air carriers currently meet the fleet size requirements, they are: Garuda Indonesia, Merpati Nusantara, Lion Air, Batavia Air, Wings Air, Sriwijaya Air and Indonesia Air Transport.

This leave 9 other Indonesian airlines with only 15 months to cover their aiplane shortfall. According to Bisnis Indonesia, the airlines scrambling to find more aircraft are:

Riau Airlines (Owning 3, operating 5)

KAL Star Aviation (Operating 2, ownership unclear)

Pelita Air Service (Operating 3, ownership unclear)

Travira AirOperating 2, ownership unclear)

Trigana Air Service (Operating 12, ownership unclear)

• Indonesian AirAsia (Operating 15, all airplanes under option to buy)

Travel Express (Fleet details unavailable)

• Dirgantara Air Service (Fleet details unavailable)

Burhanuddin feels that if the minimum fleet size rules are enforced, many airlines in Indonesia will be forced with the choice of merging or ceasing to operate.

The investment to bring an airlines armada up to 10 aircraft is not insubstantial. For example, the cost of a new Boeing 737 can range from between US$51 -$87 million, depending on the specifications of the aircraft. Added to the high cost of acquiring new airplanes, it remains doubtful if an airline with the required funds in hand could obtain delivery from a major airplane manufacturer in time to meet the January 2012 cut-off date.

Helmi Pamuraharjo, Director General of Civil Aviation, insist the January 2012 date is non-negotiable with operators long aware of the approaching deadline. He urged the affected airlines to consider merging with other domestic or foreign carriers in order to meet the deadline. Indonesian law, however, requires that 51% of any airline's share formed with a foreign partner must remain in Indonesian hands.

Riau Airlines (RAL) is reportedly unable to operate its small fleet of Fokker 50 aircraft due to missed payments to a local bank and a leasing company.

Mandala Airlines is currently flying only 5 aircraft, down from the 11 planes it flew in 2008. However, the Head of Corporate Communications for Mandala, Nurmaria Sarosa, has said that Mandala remains confident that they will have the mandated 10 aircraft in their fleet by the 2012 date.

A spokesman for Indonesia AirAsia, Audrey Petriny, said that new Airbus 320 on order from France will start arriving in 2011. By 2012 Indonesian AirAsia says it will be flying 20 Airbus 320s.


© Bali Discovery Tours. Articles may be quoted and reproduced if attributed to http://www.balidiscovery.com.


 
 
Bali News by Bali Update
Subscribe to the Bali Update
Receive the latest news from Bali by email!



Our [Privacy Statement] explains how we handle the data you are providing.

 
Bali News by Bali Update
Explore the Archive of the Bali Update
Find related articles in our news archive!




or try to use Google Search :

Home · Bali Hotels · Bali Villas · Bali Excursions · Bali Sports · Bali News · Site Map · RSS

Bali News: More News
The Yak Awards 2014
‘A Decade of Decadence’ Party at Mozaic Beach Club Marks the 10th Annual Yak Awards
(11/17/2014)
You’re One in Three or Four Million
Bali by the Numbers: Bali Now Almost Certain to End 2014 with 3.75 million Foreign Visitors
(11/17/2014)
The Very Bare Necessities
Minimum Wage Levels for Bali Announced for 2015
(11/20/2014)
How You Going to Keep Them Down on the Farm
Large Downturn in Balinese Working in Agricultural Sector.
(11/17/2014)
And the Verdict is . . .
Two Men Charged with February Murder of American Paul Latourell Facing Potential prison Sentences of 15 and 3 Years
(11/17/2014)
Bali Safari Marine Park Celebrates 7th Anniversary
The Bali Safari and Marine Park celebrates 7th anniversary on Thursday, November 13, 2014.
(11/17/2014)
President Widodo Pauses in Paradise
Indonesian President Joko Widodo Makes a ‘Transit Stop’ in Bali on his way to the G-20 Summit in Brisbane
(11/17/2014)
Philippine Taxi Drivers in Bali?
Governor Pastika Concerned that Workers in Bali May be Unable to Compete Under Free Movement of Workers Between ASEAN Countries Starting in 2015
(11/17/2014)
The Rupiah Rules
Airline Tickets Agents, Hotels and Restaurants in Indonesia Required to Transact Their Business in Indonesian Rupiahs
(11/17/2014)
Profits Disappearing into Thin Air
Q3 2014: Garuda Indonesia Loses US$219.5 million
(11/17/2014)
A Case of Reverse Thrust
Garuda Indonesia Flight Cancelled from Banyuwangi to Bali as Aircraft Rolls Backward Off the Runway
(11/17/2014)
Raising Indonesia’s Aviation Game
Minister of Transportation Says Indonesia will Take Steps to Comply with Highest Aviation Standards of FAA and ICAO
(11/17/2014)
All [News]!