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Tighter Criteria for Setting Up New Airlines


Wednesday September 20, 2006

The Transport Department said it will tighten the conditions required for new airlines to be established so that interested parties will have to produce capital of at least Rp50 billion ($5.6 million) and operate at least five aircraft, writes Indonesia’s Trade and Industry News. 

The airline must also own two of the five aircraft while the remaining three could be leased, Director General for Air Transport M. Iksan Tatang said, according to an Antara report. 

Under present regulations, a new airline is required to have only two aircraft with a minimum capital of only Rp10 billion.  "The revision of a government regulation on airline operation is final," Tatang said.  "The new policy is to improve the feasibility of the operator.”