Govt to Airlines: Shape Up or Shut Down
JAKARTA ~ The government will require passenger airlines to fly at least 10 planes by 2012 or be shut down under new rules to improve safety and service, a Transportation Ministry official said this week.
Under the new rules, at least five of the 10 planes must be wholly owned, the official said.
“By 2012, all airlines must fully own at least five planes and lease the rest. If not, they will have to shut down or merge with other airlines to meet the quota,” ministry spokesman Bambang Ervan said.
“We want airlines to be financially sound and committed to giving the best in terms of service and safety,” Ervan said.
Indonesian airlines are currently required to operate a minimum of five planes, of which at least two must be wholly owned, he said.
More than half of the country’s 50 commercial and charter airlines own fewer than five planes.
The European Union banned all Indonesian-registered aircraft from flying over its airspace in 2007, acting on a report from the International Civil Aviation Organization that criticized the country’s safety standards.Filed under: The Nation