Permits Delay Indonesia Airlines Launch
The Transportation Ministry has confirmed that Singapore-based Indonesia Airlines has not yet secured the necessary regulatory permits to begin its operations, which has postponed its anticipated soft launch this month. According to the Directorate General of Civil Aviation, the airline has not completed the required verification process for its standard certificates within the Online Single Submission (OSS) and the Integrated Aviation Licensing System (SIPTAU). As a result, the airline’s certificates are currently not considered legally valid and cannot be used as a basis for flight operations. Lukman F Laisa, the Director General of Civil Aviation, stated that an unverified status signifies an incomplete process, and without these essential documents, no permits can be issued, and no flight operations are allowed. This administrative hurdle is a significant roadblock, delaying the airline’s entry into the market and highlighting the strict regulatory framework governing new flight operators in the country.
Outstanding Business Plan Requirements
A critical missing component in the airline’s application is a detailed business plan. The Transportation Ministry requires a comprehensive five-year plan that must include the airline’s fleet acquisition strategy, operational areas, organizational structure, financial capacity, and service plans. Without this crucial document, the ministry cannot move forward with the verification of the airline’s existing documents, effectively preventing the issuance of an operational permit. Director General Lukman F Laisa stressed that there are no shortcuts to establishing an airline, emphasizing that the process involves not only administrative compliance but also strict adherence to operational and safety standards. He also highlighted the importance of transparency to the public, underscoring the government’s commitment to ensuring that all new carriers meet rigorous standards before they are allowed to fly. The lack of this comprehensive plan is a major reason for the continued delay.
Ambitious Plans Underway
Despite the current regulatory setbacks, Indonesia Airlines has an ambitious strategy to establish itself as a major international carrier. The airline, owned by Singapore-based Calypte Holding, plans to operate an international-only model, skipping the competitive domestic market. According to CEO Iskandar Ismail, the company recently finalized a €46.2 million acquisition deal for a majority stake and has secured a €12.8 billion funding commitment, attracting investment interest from countries like Australia, China, and Thailand. The airline plans to operate a fleet of 20 modern aircraft, including 10 Airbus A321neo or A321LR for medium-haul routes and 10 Airbus A350-900 and Boeing 787-9 jets for long-haul services. While the airline’s initial launch date in November 2024 was already delayed due to aircraft cabin fit-outs, the current permit issues represent a new and significant hurdle for its market entry.
