Indonesia has issued three more licences to planned start-up airlines allowing for scheduled services as it continues with efforts to expand domestic competition.
The three newly licensed companies are part of a group of 15 now approved for scheduled services. Four more applications are also being processed as others seek scheduled operating rights. The government says these should be approved by mid-year.
Excluding the three just licensed, which have been identified as Satrio Mataram Airlines, Jatayu Gelang Sejahtera and Star Air, two others which were licensed earlier have yet to start operating. These are Indonesian Airlines and Internusa Air.
The government has been calling for new carriers to be launched since September 1999, when it granted an operating licence to Indonesian Airlines. It was the first to win approval for scheduled services since Sempati Air Transport in 1989.
Although Indonesian Airlines has yet to start operating, several others which were licensed soon afterwards - Awair International, Lion Airlines and Bayu Indonesia Air - have launched services.
Indonesia's carriers suffered badly during the regional economic downturn which began in mid-1997 and Sempati was forced to cease operating in mid-1998, leaving the country with five scheduled operators - Garuda Indonesia, Merpati, Mandala, Bouraq and DAS.
As the market began to recover the government said more competition was needed and there are now 10 airlines operating scheduled services on domestic and international routes.
Source: Airline Business
