Regulations and Government
Indonesia Revokes AOCs To Force Airline Consolidation
Runaway debt forced Indonesia’s Batavia Air to ground its 15 Boeing 737-300s and the rest of its 34-strong fleet in January. Meanwhile, the government is forcing smaller airlines out of the market in an effort to encourage consolidation.
Runaway debt forced Indonesia’s Batavia Air to ground its 15 Boeing 737-300s and the rest of its 34-strong fleet in January. Meanwhile, the government is forcing smaller airlines out of the market in an effort to encourage consolidation.

Indonesia’s civil aviation authority plans to reduce the number of airlines operating in the country from 53 to 28 following the failure of most of its carriers to satisfy a minimum fleet-size requirement by January. The requirement calls for all airlines, including charter and cargo operators, to operate no fewer than 10 airplanes each, five of which they must own.

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