DOCSLIB.ORG

Liability for the Death of Aircraft Passengers in Indonesia

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Liability for the Death of Aircraft Passengers in Indonesia Journal of Air Law and Commerce Volume 85 Issue 4 Article 2 2020 Liability for the Death of Aircraft Passengers in Indonesia Simon A. Butt University of Sydney, [email protected] Tim Lindsey University of Melbourne, [email protected] Follow this and additional works at: https://scholar.smu.edu/jalc Recommended Citation Simon A. Butt et al., Liability for the Death of Aircraft Passengers in Indonesia, 85 J. AIR L. & COM. 573 (2020) https://scholar.smu.edu/jalc/vol85/iss4/2 This Article is brought to you for free and open access by the Law Journals at SMU Scholar. It has been accepted for inclusion in Journal of Air Law and Commerce by an authorized administrator of SMU Scholar. For more information, please visit http://digitalrepository.smu.edu. LIABILITY FOR THE DEATH OF AIRCRAFT PASSENGERS IN INDONESIA SIMON BUTT* TIM LINDSEY** I. INTRODUCTION N OCTOBER 29, 2018, Lion Air Flight 610 crashed into Othe Java Sea off the coast of Jakarta, the capital of Indone- sia, thirteen minutes after take-off.1 All 189 passengers and crew members died.2 The route was domestic, from Soekarno-Hatta Airport in Jakarta to Depati Amir Airport in Pangkal Pinang, on the east coast of Banka Island.3 The aircraft was a Boeing 737 MAX 8.4 The decedents’ families sought compensation for their losses and engaged lawyers to sue The Boeing Company (Boe- ing).5 Some of this litigation was commenced in the United States, where Boeing is headquartered.6 During the course of the U.S. litigation, lawyers for Boeing questioned whether the * Professor of Indonesian Law, The University of Sydney Law School. ** Redmond Barry Distinguished Professor, Malcolm Smith Professor of Asian Law, and Director of the Centre for Indonesian Law, Islam and Society at the University of Melbourne. 1 Sinead´ Baker, This Timeline Shows Exactly What Happened on Board the Lion Air Boeing 737 Max that Crashed in Less than 13 Minutes, Killing 189 People,BUS. INSIDER (Oct. 29, 2019, 12:11 PM), businessinsider.com/lion-air-crash-timeline-boeing- 737-max-disaster-killed-189-2019-10 [perma.cc/UPU5-JUMQ]. 2 Id. 3 Id. 4 Hannah Beech & Muktita Suhartono, Lion Air Crash Families Say They Were Pressured to Sign No-Suit Deal, N.Y. TIMES (Mar. 21, 2019), nytimes.com/2019/03/ 21/world/asia/lion-air-crash-families-lawsuits.html [perma.cc/XT24-AWKC]. 5 Id. 6 Id.; David Wilma, On this Day: Boeing Moves Corporate Headquarters to Chicago in 2001, KIRO 7 (Sept. 4, 2018, 10:48 AM), kiro7.com/news/local/on-this-day-boe- ing-moves-corporate-headquarters-to-chicago-in-2001/827067193 [perma.cc/ C27L-UCCZ]. 573 574 JOURNAL OF AIR LAW AND COMMERCE [85 compensation claims should be litigated in Indonesia, where the accident occurred, based on forum non conveniens grounds.7 A U.S. court will need to consider a multitude of factors when determining whether to stay litigation initiated within its juris- diction. Here, the Authors consider two of those factors: (1) In- donesian law governing liability for the death of aircraft passengers for negligence; and (2) how a claim against an air- craft carrier or manufacturer is likely to be resolved by Indone- sia’s courts. The Article begins with a brief description of the Indonesian legal system and the regulatory regime governing li- ability for losses incurred during air travel. The Authors then offer a more detailed account of Indonesia’s civil liability re- gime, focusing on damages for negligent acts and omissions, before analyzing Mahkamah Agung (Supreme Court) decisions involving civil liability for losses related to fatal air crashes. Before addressing these legal issues, the Authors now offer a short background to aviation in Indonesia. Comprising over 17,500 islands spread over 5,150 kilometers east to west, populated by over 270 million people, Indonesia is the largest archipelago in the world.8 Its transport infrastructure depends heavily on a large network of over sixty private air carri- ers (many low-cost), alongside the national flag carrier, Garuda, which is a state-owned enterprise.9 Lion Air carries the most pas- sengers (around 35%), followed by Garuda (around 26%).10 In- donesia’s air travel market is huge: between 2009 and 2014, the number of air passengers increased by over three times, from 27,421,235 to 85,215,879.11 By 2036, the International Air Trans- port Association predicts that 355 million passengers will travel 7 David Gelles, Boeing Aims to Move Victim Lawsuits Abroad, but CEO Says He Is Unaware, N.Y. TIMES (Nov. 10, 2019), nytimes.com/2019/11/10/business/boe- ing-lion-air-lawsuits-indonesia.html [perma.cc/6MXR-UC25]. 8 Indonesia General Information, UNDATA, data.un.org/en/iso/id.html [perma.cc/3RGW-EJ4M]. The population estimate is current as of November 2020. 9 Prasadja Richardianto, Gunawan Djajaputra & H.K. Martono, Air Transport and Tourism in Indonesia, 10 IOSR J. APPLIED CHEMISTRY, May 2017, at 1, 18; Indo- nesia’s Aviation Industry: Flying High,GLOB. BUS. GUIDE INDON. (2017), gbgindone- sia.com/en/services/article/2017/indonesia_s_aviation_industry_flying_high_ 11719.php [perma.cc/3SJF-M2J2]. 10 Indonesia’s Aviation Industry: Flying High, supra note 9. These numbers are current as of 2015. Id. 11 Data: Air Transport, Passengers Carried, WORLD BANK (2018), data.worldbank.org/indicator/IS.AIR.PSGR [perma.cc/2N7T-FQD9]. 2020] LIABILITY FOR AIRLINE DEATHS IN INDONESIA 575 by air in Indonesia, making its commercial transport aviation market the world’s fourth largest.12 Unfortunately, Indonesia seems to have one of the world’s least safe aviation industries. The number of accidents has in- creased significantly since the turn of the century, as aviation fuel prices have surged and competition—particularly among low-cost carriers—has increased, driving maintenance standards down.13 In 2007, Indonesia’s civil aviation head, Budhi M. Suyitno, admitted his country had 3.77 fatal flight accidents for every one million flights, when the global average was 0.25.14 Indonesia’s safety record was, he said, “woeful” and the situation “absolutely unacceptable.”15 From 2007 to 2018, the European Union banned Indonesian airlines over safety concerns16 (al- though Garuda was allowed to enter from 200917), and the United States maintained a similar ban from 2007 to 2016.18 In these circumstances, it could be expected that claims for compensation relating to air fatalities would be common in In- donesian courts and that a sophisticated body of jurispru- dence—one that offers clarity to parties to such litigation regarding potential liability and quantum of damages—might have developed. Unfortunately, research demonstrates that, in fact, the opposite appears to be true. Despite the large numbers of accidents, very few claims for liability for the death of aircraft 12 Rachmadea Aisyah, Indonesia Prepares for Jump in Number of Air Passengers, JAKARTA POST (Feb. 9, 2018, 11:12 AM), thejakartapost.com/news/2018/02/09/ indonesia-prepares-for-jump-in-number-of-airline-passengers.html [perma.cc/ 3C5Y-D8EW]. 13 See Elisa Valenta, Membedah Penyebab Mahalnya Harga Avtur di Indonesia [Dis- secting the Causes of High Aviation Prices in Indonesia], BERITAGAR (Feb. 14, 2019), beritagar.id/artikel/berita/membedah-penyebab-mahalnya-harga-avtur-di-indo- nesia [perma.cc/39KG-WMUS?type=image]. 14 Safety Woeful, Admits Air Chief,SYDNEY MORNING HERALD (Nov. 3, 2007, 1:17 AM), smh.com.au/world/safety-woeful-admits-air-chief-20071103-gdri0f.html [perma.cc/64HC-AE9Y]. 15 Id. 16 FSF Editorial Staff, EU Lifts Ban on Flights by Indonesian Airlines,FLIGHT SAFETY FOUND. (June 14, 2018), flightsafety.org/eu-lifts-ban-on-flights-by-indone- sian-airlines/ [perma.cc/8NGG-FVRC]. 17 Peter Gelling, European Union Lifts Ban on Indonesian Airlines, N.Y. TIMES (July 15, 2009), nytimes.com/2009/07/16/business/global/16air.html [perma.cc/2JZS-N3FU]. In 2009, the European Union ban was amended to allow Garuda to fly to Europe. Id. 18 Indonesia Airlines Cleared to Fly to the United States,ABC NEWS (Aug. 15, 2016, 3:49 AM), abc.net.au/news/2016-08-15/indonesia-airlines-cleared-to-fly-to-us/ 7736642 [perma.cc/9B3V-MX5U]. 576 JOURNAL OF AIR LAW AND COMMERCE [85 passengers have reached Indonesian courts,19 so the legal infra- structure for resolving these claims remains largely untested. Re- sults are, therefore, unpredictable. However, one thing seems clear: damages recovered have been low, particularly in compar- ison with the amounts of compensation available in other juris- dictions.20 A likely explanation is that a reasonable proportion of cases are settled without litigation, with outcomes kept confi- dential. But if these settlements are reached in the shadow of Indonesia’s legal infrastructure, with its limited jurisprudence relating to civil aviation accidents, then the prospect of victims recovering significant compensation is low. II. THE INDONESIAN LEGAL SYSTEM The Indonesian legal system is a member of the “civil law” or “continental law” group of systems found in European countries such as France, Germany, and Holland and their former colo- nies or client states, as opposed to “common law” systems such as those of the United Kingdom and its former colonies or cli- ents, including the United States.21 At the time of its indepen- dence on August 17, 1945, Indonesia inherited Dutch colonial 19 See, e.g., Saiful Bahri v. Boeing, Mahkamah Agung [Supreme Court] Nov. 28, 2017, Decision No. 1797 K/Pdt/2013, Direktori Putusan (Indon.), putusan3. mahkamahagung.go.id/direktori/putusan/feade1d3d3e0f3c720e20cb8d4a9fc05. html [perma.cc/RM3J-2QHN]; Karim v. Boeing, Pengadilan Tinggi Jakarta [Jakarta High Court] Nov. 7, 2014, Decision No. 557/Pdt/2014/PT.DKI (Indon.) (on file with Authors); Andre Adiputra v.
Load more

Recommended publications
  • Jeweltex Manufacturing Inc., Retirement Plan, Et Al. V. The
    Case 1:19-cv-02020-WFK-PK Document 1 Filed 04/08/19 Page 1 of 41 PageID #: 1 UNITED STATES DISTRICT COURT EASTERN DISTRICT OF NEW YORK _________________________________________ ) JEWELTEX MANUFACTURING INC., ) CASE NO. RETIREMENT PLAN, Individually and On ) Behalf of All Others Similarly Situated, ) ) Plaintiff, ) CLASS ACTION COMPLAINT ) vs. ) ) JURY TRIAL DEMANDED THE BOEING COMPANY, DENNIS A. ) MUILENBURG, ROBERT A. BRADWAY, ) DAVID L. CALHOUN, ARTHUR D. COLLINS, ) JR., KENNETH M. DUBERSTEIN, ADMIRAL ) EDMUND P. GIAMBASTIANI, JR., LYNN J. ) GOOD, NIKKI R. HALEY, LAWRENCE W. ) KELLNER, CAROLINE B. KENNEDY, ) EDWARD M. LIDDY, SUSAN C. SCHWAB, ) RONALD A. WILLIAMS, and MIKE S. ) ZAFIROVSKI, ) ) Defendants. ) _________________________________________ Plaintiff Jeweltex Manufacturing Inc., Retirement Plan (“Plaintiff”), by and through its undersigned attorneys, alleges the following based upon information and belief, except as to those allegations concerning Plaintiff, which are alleged upon personal knowledge. Plaintiff’s information and belief is based upon, among other things, the investigation conducted by his counsel which included, among other things: (a) a review and analysis of regulatory filings of The Boeing Company (“Boeing” or the “Company”) filed with the United States Securities and Exchange Commission (“SEC”); (b) a review and analysis of press releases and media reports issued and disseminated by Boeing; (c) a review of other publicly available information concerning Boeing, including articles in the news media and analyst reports; (d) a review and analysis of regulatory investigations and reports; and (e) complaints and related materials in litigation commenced against some or all of the Defendants Case 1:19-cv-02020-WFK-PK Document 1 Filed 04/08/19 Page 2 of 41 PageID #: 2 pertaining to Boeing and the fatal accidents involving the 737 Max series of aircraft (the “737 Max Accidents”) and their causes and aftermath.
    [Show full text]
  • Liste-Exploitants-Aeronefs.Pdf
    EN EN EN COMMISSION OF THE EUROPEAN COMMUNITIES Brussels, XXX C(2009) XXX final COMMISSION REGULATION (EC) No xxx/2009 of on the list of aircraft operators which performed an aviation activity listed in Annex I to Directive 2003/87/EC on or after 1 January 2006 specifying the administering Member State for each aircraft operator (Text with EEA relevance) EN EN COMMISSION REGULATION (EC) No xxx/2009 of on the list of aircraft operators which performed an aviation activity listed in Annex I to Directive 2003/87/EC on or after 1 January 2006 specifying the administering Member State for each aircraft operator (Text with EEA relevance) THE COMMISSION OF THE EUROPEAN COMMUNITIES, Having regard to the Treaty establishing the European Community, Having regard to Directive 2003/87/EC of the European Parliament and of the Council of 13 October 2003 establishing a system for greenhouse gas emission allowance trading within the Community and amending Council Directive 96/61/EC1, and in particular Article 18a(3)(a) thereof, Whereas: (1) Directive 2003/87/EC, as amended by Directive 2008/101/EC2, includes aviation activities within the scheme for greenhouse gas emission allowance trading within the Community (hereinafter the "Community scheme"). (2) In order to reduce the administrative burden on aircraft operators, Directive 2003/87/EC provides for one Member State to be responsible for each aircraft operator. Article 18a(1) and (2) of Directive 2003/87/EC contains the provisions governing the assignment of each aircraft operator to its administering Member State. The list of aircraft operators and their administering Member States (hereinafter "the list") should ensure that each operator knows which Member State it will be regulated by and that Member States are clear on which operators they should regulate.
    [Show full text]
  • University of Groningen Technology Operations and Management Master's Thesis Aviation in a Pandemic: the Profitability Approac
    Aviation in a Pandemic: The profitability approach for an airline's operation in a pandemic context - University of Groningen Technology Operations and Management Master’s Thesis Written by: Barran Haunan Supervisor: dr. N.B. Szirbik Co-assesor: dr. ir. D.J. van der Zee March 2, 2021 Contents Abstract .................................................................................................................................................. 2 1. Introduction ................................................................................................................................... 3 2. Theoretical background ............................................................................................................... 8 2.1 Revenue Framework ............................................................................................................. 9 2.2 Cost Framework .................................................................................................................. 10 2.3 Revenue and Cost Conditions during the Pandemic ....................................................... 11 3. Methodology .................................................................................................................................... 14 3.1 Selecting case study as the main research design ................................................................... 14 3.2 Design Science Research ........................................................................................................... 15 3.3 Subject Selection:
    [Show full text]
  • Post COVID-19 Recovery Models and Strategies for Aviation in Indonesia
    International Journal of Technology 11(6) 1265-1274 (2020) Received August 2020 / Revised November 2020 / Accepted November 2020 International Journal of Technology http://ijtech.eng.ui.ac.id Post COVID-19 Recovery Models and Strategies for Aviation in Indonesia Heri Fathurahman1*, Muhammed Ali Berawi2, Imbuh Sulistyarini3, Andyka Kusuma2, Yasmine Nasution3, Komarudin4 1Department of Business Administration, Faculty of Administrative Sciences, Universitas Indonesia, Kampus UI Depok, Depok 16424, Indonesia 2Department of Civil Engineering, Faculty of Engineering, Universitas Indonesia, Kampus UI Depok, Depok 16424, Indonesia 3Department of Management, Faculty of Economics and Business,, Universitas Indonesia, Kampus UI Depok, Depok 16424, Indonesia 4Department of Industrial Engineering, Faculty of Engineering, Universitas Indonesia, Kampus UI Depok, Depok 16424, Indonesia Abstract. Global aviation has experienced many crises in the past, each of which has had a significant impact on air traffic. After each fall, the industry recovers and returns stronger, exceeding the previous volume of traffic; however, the COVID-19 pandemic presents a new level of concern, with unknown detrimental effects. The airlines, airports and all other partners involved have greatly suffered. The airport system has been hit by flight closures in many markets, including Indonesia. Airport management and operating companies, concessionaires, terminal tenants, ground handling and catering companies, and the various partners involved are under stress and financial constraints due to the pandemic. In response to this, the flight plan for the “new normal” takes into account the new flight demand and airline market structure scenarios. By using the qualitative approach, this research tries to construct recovery models and strategies for the Indonesian aviation industry post-pandemic.
    [Show full text]
  • In the Court of Chancery of the State of Delaware
    IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE THOMAS P. DiNAPOLI, COMPTROLLER OF THE STATE OF NEW YORK, AS ADMINISTRATIVE PUBLIC VERSION HEAD OF THE NEW YORK STATE FILED ON: June 30, 2020 AND LOCAL RETIREMENT SYSTEM, AND AS TRUSTEE FOR THE NEW YORK STATE COMMON RETIREMENT FUND, and FIRE AND POLICE PENSION ASSOCIATION OF COLORADO, Plaintiffs, v. C.A. No. 2020-0465-AGB KENNETH M. DUBERSTEIN, MIKE S. ZAFIROVSKI, ARTHUR D. COLLINS JR., EDWARD M. LIDDY, ADMIRAL EDMUND P. GIAMBASTIANI JR., DAVID L. CALHOUN, SUSAN C. SCHWAB, RONALD A. WILLIAMS, LAWRENCE W. KELLNER, LYNN J. GOOD, ROBERT A. BRADWAY, RANDALL L. STEPHENSON, CAROLINE B. KENNEDY, W. JAMES MCNERNEY JR., DENNIS A. MUILENBURG, KEVIN G. MCALLISTER, RAYMOND L. CONNER, GREG SMITH, J. MICHAEL LUTTIG, GREG HYSLOP, and DIANA L. SANDS, Defendants. and THE BOEING COMPANY, Nominal Defendant. VERIFIED STOCKHOLDER DERIVATIVE COMPLAINT {FG-W0467081.} Plaintiffs Thomas P. DiNapoli, Comptroller of the State of New York, as Administrative Head of the New York State and Local Retirement System, and as Trustee of the New York State Common Retirement Fund, and Fire and Police Pension Association of Colorado, stockholders of The Boeing Company (“Boeing,” the “Company,” or “Nominal Defendant”), bring this action on Boeing’s behalf against the current and former officers and directors identified below (collectively, “Defendants”) arising from their failure to monitor the safety of Boeing’s 737 MAX airplanes. The allegations in this Complaint are based on the knowledge of Plaintiffs as to themselves, and on information and belief, including the review of publicly available information and documents obtained under 8 Del.
    [Show full text]
  • Demand in Indonesian Domestic Air Travel Market After Deregulation
    Advances in Engineering Research (AER), volume 147 Conference on Global Research on Sustainable Transport (GROST 2017) DEMAND IN INDONESIAN DOMESTIC AIR TRAVEL MARKET AFTER DEREGULATION Basri Fahriza1,2, Frank Willey1 1. RMIT University, 2. STMT Trisakti. corresponding author: [email protected] Abstract: This research is exploring the change of domestic air travel market demand in Indonesia prior and post deregulation. Changes on policies in Indonesian aviation were contributed to the present day market. This historical overview will examine the ‘oligopoly policy’ with only five airlines and the deregulation process that began in 1999. The research then analyses the demand for domestic air travel. Exponential Moving Average Growth were using to analysing data to forecasting the number of passenger from year 2007 to 2015 in yearly basis. Demand is then analysed on three separate airline routes in Indonesia they are Jakarta-Medan, Jakarta-Surabaya, and Jakarta-Pontianak. Keywords: Demand, Domestic Air Travel, Deregulation, Passeneger, Indonesia. Introduction Deregulation in Indonesia start when governments remove restrictions on airlines business Indonesia to encourage the efficient, competitive and consumer oriented marketplace in Indonesian airline industry (Williams, 1993). Secretary General of the Ministry of Communications Anwar Suprijadi said the decision to deregulate was taken in a bid to promote fair competition in domestic airline services, (“Govt insists on licensing more airlines,” 1999). And resulting numbers of new Indonesian airlines emerged predominantly mostly in the cut-fare sector including Lion Air; Indonesia’s Air Asia, former Adam Air, former Batavia Air and Sriwijaya Air, radically changing the nature of the airline business in Indonesia with present of low cost carrier.
    [Show full text]
  • Vol-5, Issue 2
    International Journal of Management Sciences and Business Research, Feb-2016 ISSN (2226-8235) Vol-5, Issue 2 Analysis on the Factors Causing Airlines Bankruptcy: Cases in Indonesia Author’s Details: (1)Suharto Abdul Majid-Faculty of Economic and Business, Padjadjaran University, Bandung, Indonesia (2) Sucherly - Faculty of Economic and Business, Padjadjaran University, Bandung, Indonesia (3) Umi Kaltum- Faculty of Economic and Business, Padjadjaran University, Bandung, Indonesia Abstract the high growth of national aviation services after the aviation deregulation in 2000 has given a positive impact on the increase of national economic activities, especially in tour and trade. In the same time, however, it negatively impacts the aviation business itself, making many airline companies stop their operation and then go to bankruptcy. The aim of this research is to analyze the factors causing bankruptcy to some national airline companies in Indonesia after the aviation deregulation in the periods of 2001-2010 and 2011-2015. It is an exploratory research with a qualitative descriptive approach emphasizing on evaluating the factors causing bankruptcy to a number of domestic airlines in Indonesia. The method of data collection is an interview with the format of focus group discussion (FGD), while the data analysis uses factor analysis method. The results of this research show that there are two main factors that cause bankruptcy to a number of domestic airlines in Indonesia. They are both internal and external factors of the companies. Key words: Airline companies bankruptcy, internal factors, and external factors. INTRODUCTION Since the implementation of the national aviation deregulation policy in 2000, the growth of aviation business in Indonesia increases rapidly.
    [Show full text]
  • Remote ID NPRM Maps out UAS Airspace Integration Plans by Charles Alcock
    PUBLICATIONS Vol.49 | No.2 $9.00 FEBRUARY 2020 | ainonline.com « Joby Aviation’s S4 eVTOL aircraft took a leap forward in the race to launch commercial service with a January 15 announcement of $590 million in new investment from a group led by Japanese car maker Toyota. Joby says it will have the piloted S4 flying as part of the Uber Air air taxi network in early adopter cities before the end of 2023, but it will surely take far longer to get clearance for autonomous eVTOL operations. (Full story on page 8) People HAI’s new president takes the reins page 14 Safety 2019 was a bad year for Part 91 page 12 Part 135 FAA has stern words for BlackBird page 22 Remote ID NPRM maps out UAS airspace integration plans by Charles Alcock Stakeholders have until March 2 to com- in planned urban air mobility applications. Read Our SPECIAL REPORT ment on proposed rules intended to provide The final rule resulting from NPRM FAA- a framework for integrating unmanned air- 2019-100 is expected to require remote craft systems (UAS) into the U.S. National identification for the majority of UAS, with Airspace System. On New Year’s Eve, the exceptions to be made for some amateur- EFB Hardware Federal Aviation Administration (FAA) pub- built UAS, aircraft operated by the U.S. gov- When it comes to electronic flight lished its long-awaited notice of proposed ernment, and UAS weighing less than 0.55 bags, (EFBs), most attention focuses on rulemaking (NPRM) for remote identifica- pounds.
    [Show full text]
  • Publications 2019
    AAIP Policy Paper No. 2 / 2019 – Reviewing Ownership and Control of the Indonesian Airlines Ridha Aditya Nugraha ASEAN Aviation Integration Platform (AAIP) Policy Paper No. 2 / 2019 Reviewing Ownership and Control of the Indonesian Airlines Ridha Aditya Nugraha Air Power Centre of Indonesia Air and Space Law Studies, International Business Law Program Universitas Prasetiya Mulya Member of German Aviation Research Society The views expressed are those of the author. 2 AAIP Policy Paper No. 2 / 2019 – Reviewing Ownership and Control of the Indonesian Airlines Ridha Aditya Nugraha Contents Executive Summary .............................................................................................................................. 4 1. The Liberalization Progress in Indonesia ................................................................................... 5 2. The State of Play ............................................................................................................................ 6 3. The Current Legal Regime and Its Limits .................................................................................. 9 4. Benefits from Relaxing Ownership and Control of the Indonesian Airlines ...................... 10 5. The Way Forward and Conclusions ......................................................................................... 12 Table 1: Domestic Flights Market Share of Indonesian Airlines, 2017 ........................................... 7 Table 2: International Flights Market Share of Indonesian Airlines, 2017
    [Show full text]
  • Flying Blind
    VAN ZORGE REPORT — FEBRUARY 8, 2007 AVIATION Flying blind s the top executives from nearly every major Indonesian airline gathered THE MEETING OF AIRLINE EXECUTIVE WAS around a table at the ministry of transportation in mid-January, a TENSE. A general feeling of irritability filled the air. The group rarely meets and certainly not on such short notice—a combination that led to a somewhat tense atmosphere, one executive at the meeting told the Report. Following the January 1 Adam Air crash, the country’s beleaguered THEY FELT IT WAS UNNECESSARY DESPITE transportation minister, Hatta Radjasa, had called the meeting to discuss the THE RECENT CRASH. country’s aviation safety procedures, which had fallen under heavy scrutiny in the wake of the recent disaster. “Some of them were grumbling,” the executive said. “They said that they knew perfectly well the government’s aviation safety procedures, and they didn’t need reminding.” Indeed, many of those aviation executives certainly have a very professional HOWEVER, ACCUSATIONS ARE RIFE THAT attitude toward air safety. But since the Adam Air tragedy, accusations have SAFETY MEASURES ARE LACKING. intensified that not all airlines in Indonesia have prioritised the safety of their passengers and crews. Some NGOs, DPR members and media outlets have recently questioned THE AVIATION INDUSTRY SEEMS TO BE TWO what they see as the development of a two-tier system within Indonesia’s TIERED IN INDONESIA. aviation industry. They say that many of the budget carriers are prioritising profit over safety while the more expensive carriers are doing a more professional job. However, the jury is still out on whether these budget carriers, which BUT THE JURY IS STILL OUT ON THE mushroomed after the industry was deregulated in the late 1990s, are operating BUDGET CARRIERS.
    [Show full text]
  • Road to Recovery
    ICINTERNATIONAL CAOIVIL AVIATION ORGANIZATION Road to Recovery On the heels of a very tough year for global aviation, 2010 GDP projections are finally providing our sector with some welcome, though still cautious optimism. ICAO’s Economic Analysis and Policy Section looks at how bad it really got post-2008 and how tentative the ongoing recovery remains. State Profile Features: The Republic of Korea and Malaysia Also in this issue: Jane Hupe: Aviation and the Environment Post COP/15 • UAE Climate Change Perspective Argentina Deposit • Central American Air Navigation Experts Working Group Vol. 65, No. 2 Contents Strengthening Safety and Security Efforts ICAO Secretary General Raymond Benjamin reviews recent efforts to bolster and enhance aviation’s safety and security approaches in order to respond to the latest challenges and developments in these areas . 3 Small Steps to Economic Recovery THE ICAO JOURNAl VOlUME 65, NUMbER 2, 2010 In 2009 the world economy faced the most severe and synchronized recession since the Great Depression, leading to significant systemic changes which heavily impacted the Editorial air transport industry. Narjess Teyssier, Chief of the ICAO Economic Analysis and Policy ICAO Regional Coordination and Communications Office Section, provides a detailed review of the causes, concerns and new glimmers Tel: +01 (514) 954-8220 of hope emerging from our deepening understanding of the 2008–09 global financial Web site: www.icao.int meltdown and air transport’s responses to it . 5 Anthony Philbin Communications Senior Editor: Anthony Philbin Tel: +01 (514) 886-7746 beyond COP/15 E-mail: [email protected] Though the failure of certain States to arrive in Copenhagen with clear domestic Web site: www.philbin.ca policy positions ultimately led to the collapse of a potentially urgent international Production and Design deal on climate change, ICAO’s efforts in advance of and during the COP/15 proceedings Bang Marketing Stéphanie Kennan helped to focus and bring unity to the aviation sector on a number of important fronts.
    [Show full text]
  • THE IMPACT of RESTRUCTURING on the AIRLINE PERFORMANCE: the Case of Garuda Indonesia
    Výskumné štúdie THE IMPACT OF RESTRUCTURING ON THE AIRLINE PERFORMANCE: The Case of Garuda Indonesia Roberto AKYUWEN ABSTRACT: Garuda Indonesia is an airline company owned by the Indonesian Government. The airline has been vastly deve- Dr. Roberto Akyuwen loped since being established in 1950. Remarkable growth has been achieved mainly due to the fact that in the Senior Lecturer early years there was minimal competition in the airline industry in Indonesia. Being the fi rst Indonesian airline, Finance Education and Training Center Yogyakarta Garuda Indonesia monopolised the commercial air transportation services. This situation allowed more than Ministry of Finance Republic Indonesia reasonable company performance for many years. However, since the government introduction of an open do- Jl. Solo Km 11 Kalasan, Sleman, Yogyakarta 55571 INDONESIA mestic airline industry in 1990, Garuda Indonesia started to face diffi culties. Garuda competed against a number Telp. 62-274-496219, Facs. 62-274-497235 of private airlines, which possessed expansive strategies in developing routes as well as increasing the number [email protected], [email protected] of aircraft. The performance of Garuda Indonesia gradually decreased to a low when operational profi t and cash fl ow reached negative fi gures during the period 1993 to 1997. Further, the seat load factor and on time perfor- Roberto Akyuwen was born in Ambon, Indonesia on 19 March, 1970. He obtained his doctorate degree with cum mance were also worsening. To overcome these problems, restructuring was fi rst undertaken during 1998 to laude in 2003 from the Doctorate Program in Economics, Gadjah Mada University Yogyakarta. Currently, he has 2001.
    [Show full text]