As it may affect some members who plan to buy tickets to fly Air Asia, or some other minor domestic airlines, in the coming months...here is a link to a report in yesterday's Jakarta Post Business....No grace period for ailing airlines | The Jakarta Post
To summarize....airlines with negative equity after Sept 30 will lose their permit to fly. Air Asia Indonesia is a major airline within this 'at risk' group and they plan to raise equity by selling bonds....but, apparently, no plan B if they cannot sell enough.
It's an Indonesian regulation that not more than 49% of Airline capitalization be owned by foreigners....yet who else would they expect will buy bonds of an airline that has consistantly lost money, and owes more than its value....beats me!
Air Asia Indonesia lost US$48M last financial year and US$12M in 2013.
IMO this situation was created by the aviation ministry itself by budging into the price of seats...not only did they cap the cost of a full-fare, they raised the price of the minimum fare, thus reducing competition on domestic routes.
All RI domestic airlines lost customers in the 1st half 2015 compared to same in 2014.
To summarize....airlines with negative equity after Sept 30 will lose their permit to fly. Air Asia Indonesia is a major airline within this 'at risk' group and they plan to raise equity by selling bonds....but, apparently, no plan B if they cannot sell enough.
It's an Indonesian regulation that not more than 49% of Airline capitalization be owned by foreigners....yet who else would they expect will buy bonds of an airline that has consistantly lost money, and owes more than its value....beats me!
Air Asia Indonesia lost US$48M last financial year and US$12M in 2013.
IMO this situation was created by the aviation ministry itself by budging into the price of seats...not only did they cap the cost of a full-fare, they raised the price of the minimum fare, thus reducing competition on domestic routes.
All RI domestic airlines lost customers in the 1st half 2015 compared to same in 2014.