JAKARTA - PT AirAsia Indonesia Tbk (CMPP) CEO Dendy Kurniawan said that the airline is not concerned with the government’s proposed plan to allow foreign airlines to operate domestic routes in Indonesia. According to Mr Kurniawan, the proposal needs not to be debated and related parties only need to refer to Law No. 1/2009 concerning Aviation.
“The law clearly states that at least a 51% stake in an Indonesian scheduled commercial airline has to be owned by a local entity, whether it’s a limited liability company or an individual,” said Mr Kurniawan in a public expose at the GranDhika Iskandarsyah Hotel, South Jakarta on Monday (24/6).
In addition, Mr Kurniawan also reaffirmed Indonesia AirAsia’s status as an Indonesian scheduled commercial airline despite being part of the Malaysia-based AirAsia Group.
“We do use the AirAsia brand, but in terms of our AOC (air operator certificate), our airline, and our limited liability company we are an Indonesian scheduled commercial airline,” he said.
Recently, President Joko “Jokowi” Widodo remarked that the government would consider permitting foreign airlines to fly domestic routes in Indonesia as a response to rising airfares. Numerous parties, including aviation observers, have voiced criticism to the proposal, citing concerns that it could harm local airlines.
“Referring to the law, foreign ownership [in Indonesian airlines] is limited to 49%... I think the President’s statement did not indicate that the law would be changed,” Mr Kurniawan told the press after the public expose. (MS)