Transportation Minister Ignatius Jonan, center, has given an additional 13 airlines operating in Indonesia an extension to fulfill their capital requirements. (Antara Photo/Puspa Perwitasari)

Transport Ministry Grounds Six Airlines, Puts 13 on Notice


AUGUST 06, 2015

Jakarta. The Indonesian government has revoked the Air Operator Certificates of six airlines for failing to fulfill their minimum aircraft requirements, while giving extensions to 13 others to fulfill their capital requirements, the transport minister said on Wednesday.

Minister Ignasius Jonan named Asco Nusa Air, Air Maleo, Manunggal Air Service, Nusantara Buana Air, Survai Udara Penas and Jatayu Air as the six airlines to have their certificates revoked.

An Air Operator Certificate, or AOC, essentially gives aviation companies the green light to operate commercially.

"They did not fulfill the requirements needed [to maintain an AOC] after we had extended the deadline from June 30 to July 31," he told reporters.

The airlines are eligible to reapply for operational permits next month if all stipulations are fulfilled. Should they fail to make a new AOC proposal, their aviation business license, or SIUP, would be declared invalid.

The ministry also gave extensions to 13 airlines that had not reached its minimum capital requirements, giving them time to acquire more funds by Sept. 30.

The government will thoroughly review the airlines' business plans, operations and feasibility if they fail to meet the deadline, the minister said.

"If by Sept. 30, there are still airlines with negative equity, not only we will review them but we will also forbid them to fly. The review will be conducted within four months so the final decision will be announced in October," Jonan said.

AirAsia Indonesia, a local unit of Malaysia-based low cost carrier AirAsia Berhad, is among the 13 being closely monitored by the ministry.

Seperately, aviation observer Arista Atmadjati applauded the Transport Ministry's decision to revoke the permits of the six troubled airlines, saying it showed the the ministry's commitment to implement strict regulations.

He also applauded the move to grant a deadline extension for air carriers to meet the their capital requirements as sufficient capital is crucial for aircraft maintenance and operations.

"Revoking their permits will interfere with the industry dynamics, especially if big airlines like AirAsia are also included on the list," Arista said.