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Govt to restrict budget airlines' access to protect domestic carriers JAKARTA - Indonesia is to impose new restrictions on foreign budget airlines flying to key destinations such as Jakarta and Bali to protect its own operators in the face of fierce competition, reports said on Wednesday. Transport Minister Hatta Rajasa said the new regulations would remain in place until Indonesia had negotiated agreements with other national aviation authorities over the booming low-cost air industry in the region.

"We issue the decision this year and it will be valid until we have new agreements with foreign countries applying the low-cost carriers concept to fly to and from Indonesia," Rajasa said, according to the state Antara agency. Rajasa said the government would close off airports in four cities, Jakarta, Medan in North Sumatra, Surabaya in East Java and Denpasar in Bali to further budget flights by foreign operators. He said the government would also temporarily bar foreign low-cost carriers and foreign scheduled flights from landing at Yogyakarta and Semarang, both in Central Java province.
The announcement follows the scrapping by fledgling Indonesian budget carrier AWAIR - an affiliate of Malaysia's AirAsia - of a planned Singapore route after Singaporean aviation officials complained about Jakarta's restrictions. Singapore said it had refused access to AWAIR because of Indonesia's new regulations, but the airline accused the Civil Aviation Authority of Singapore of using it as a bargaining chip to protect its own low-cost carriers.



Posted in Economy @ 23 March 2005 00:01 CET by Jeroen · 'Blog' RSS feed · permalink






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