- June 4, 2019
- Posted by: admin
- Category: Daily News
- The Transportation Ministry is studying a proposal made by President Joko “Jokowi” Widodo, who suggested inviting foreign airlines to serve domestic routes as an attempt to push down airfares.
- Budi said foreign airlines had to fulfill tough requirements to operate in the country.
- First, they must abide by the Cabotage principle of the aviation industry, namely establish a company in Indonesia and ensure 51% of their shares are owned by Indonesian nationals.
- The foreign company would also need to assure flight safety and security, including by conducting regular airworthy checks by the Transportation Ministry.
- Budi assured that those requirements were not easily fulfilled by foreign airlines. “Aviation is a tight business with tough requirements. The number of players is also limited,” he added.