Indonesia

The CEO of Daya Anagata Nusantara (Danantara) said Garuda Indonesia will receive funds to purchase 15 new aircraft. He said Danantara will allocate funds to other state companies as well

The Soekarno-Hatta International Airport is preparing to welcome 51,314 Indonesian pilgrims returning from the Hajj pilgrimage, which will begin on 12 Jun until 10 Jul

TransNusa Airlines will increase flight connectivity between Bali and Perth, Australia, to 2 times per day. From 2-17 Jul, the airlines will operate a daily flight plus an additional flight 4 days a week, and will increase to 2 flights daily from 18 Jul

nJourney Airports anticipates that passengers will increase to 2.71 million pax over the Eid al-Adha long weekend from 5-10 Jun, +8% YoY, whilst flight traffic will reach 20,000, +5.25% YoY. It forecasts around 500,000 pax on 5 Jun at its peak

Indonesia AirAsia announced that Veranita Yosephine left her post as President Director of Indonesia AirAsia from 28 May. AirAsia appointed Captain Achmad Sadikin Abdurachman as Acting President Director, while continuing in his current Director of Corporate Safety & Quality role

Garuda Indonesia is in talks with Danantara for a $500 million USD fund injection, according to source. The agreement is expected to be finalised by Jun or Jul. Some of the fund will be allocated to Citilink to increase its operational aircraft. The government is also considering making Pertamina control Citilink. Garuda representatives declined to comment on this matter. As of Dec 2024, Garuda recorded $1.4 billion USD more in debt than assets

IndiGo signed a codeshare agreement with Garuda Indonesia to allow IndiGo to expand to 17 destinations across Indonesia, with Garuda having access to 7 destinations in India

Vietnam Airlines launched its direct flight service between HCMC and Bali from 3 Jun with 4 flights per week

Pelita Air launched a direct flight between Jakarta and Lombok

Garuda Pilot Association President assured that Haj flights will proceed without any issues despite the internal conflict between the management and the Garuda employee union

Pertamina is expanding its project to integrate used cooking oil into sustainable aviation fuel. Its subsidiary, Kilang Pertamina Internasional (KPI), said the Used Cooking Oil to Sustainable Aviation Fuel (USAF) project is being carried out at the Cilacap refinery in Central Java province. The USAF project started in 2020 with the production of Bioavtur J2.4 from palm kernel oil at the refinery. The fuel was tested in a CN-235 aircraft in 2021 and on Garuda Indonesia’s commercial flight for the Jakarta-Solo route

Garuda Indonesia’s Director of Human Capital & Corporate Service said that they prioritise harmonious industrial relations as an important foundation to provide quality service. She explained that the recruitment of 14 former Lion Air employees complies with Good Corporate Governance (GCG) principles, and their remuneration complies with the market benchmark. She added that the company maintains good communication with its three labour unions at Garuda Indonesia

Garuda Indonesia and the Garuda Pilot Association (APG), part of Garuda’s employee union, are in dispute over the new hiring policy. APG urged the President and the Minister of State-Owned Enterprises (SOEs) to evaluate the new Garuda Indonesia management. APG said the recruitment of former Lion Air employees is the source of this conflict. A Parliament Member raised concern over new recruits being paid from 25-117 million IDR during the House of Representatives Commission VI meeting, which oversees SOEs. This adds 1 billion IDR to Garuda’s payroll expenses. APG called this an unusual amount and criticised the decision, given that Garuda recorded $75.9 million USD net loss in Q1 2025. In 2024, the airline recorded a $29.9 million USD net loss. APG also highlighted the sudden cessation of automatic payroll deductions for union membership fees, seeing the move as a sign of bad faith - Garuda noted that this has been in place since 2024, to allow employees to decide to join a union

Lion Air officially launched a new direct route connecting Yogyakarta Kulonprogo International Airport and Juwata International Airport in Tarakan, North Kalimantan

Indonesia Airlines is committed to launching its operation. The CEO is disappointed with the Director General of Civil Aviation’s statement calling the airlines’ operational plans baseless and a “hoax” during a parliamentary hearing. The Director said the ministry had not received any formal license applications from the airline. Indonesia Airlines' CEO called the statement “counterproductive” to investment. He said the airlines held regular discussions and visits from the ministry. He added that many local pilots showed interest in joining the airlines and highlighted support from the airlines’ international partners in Singapore and Thailand. On 14 Mar, the parent company of Indonesia Airlines, Calypte Holdings, signed an acquisition deal with a German company to take over a stake in PT Indonesia Airline Holding worth 46.2 million Euro, backed by a 12.8 billion Euro funding commitment. Investors from Australia, China, and Thailand showed interest in funding the airlines. The airlines have secured commitments for 3 aircraft from a Japanese lessor and are negotiating for 4 more aircraft. Indonesia Airlines planned to deploy 20 modern aircraft, including 10 narrow-body Airbus aircraft and 10 wide-body Airbus and Boeing aircraft for long-haul destinations. He confirmed a soft launch for Jul, and noted that 80% of the necessary paperwork has been completed. The inaugural flight is set to be early 2026, to accommodate the completion of the interior fit-outs

Garuda Indonesia said scheduled flights contributed 83% of revenue, making it the main source of income, while non-scheduled flights such as Umrah services charter contributed 5% of revenue, and it recorded +93% YoY growth. Other flight-related services, mainly MRO, contributed 11% of the revenues. The airline is on track to reach 100 operational aircraft by the end of 2025

The Director General of Air Transportation said that from 21 Mar-11 Apr, the cumulative on-time performance (OTP) was 83% for domestic routes and 91.88% for international routes. He attributed better airport facilities overseas to the high OTP for international flights. The OTP for domestic flights reached 78.7% from Jan-Apr 2025, a drop from 79.73% in 2024. He said the weather is the prominent reason for flight delays. Lion Air Group President agreed that weather has frequently caused domestic flight delays and blamed the distances between the airport terminals as another cause for delays. He added the Skytrain is not being optimally used as it is located outside the terminal at the Soekarno-Hatta Airport

Bali International Airport is preparing to welcome tourists during the high season. In Apr 2025, the airport recorded over 2,028,344 passengers and 12,119 flights. The General Manager of the airport said the increase in arrivals was linked to the Eid al-Fitr, Good Friday, and Easter holiday period. The airport said during the Eid holiday from 1-7 Apr, the airport recorded 495,876 passengers. During Good Friday and Easter holidays from 17-20 Apr, the airport recorded 280,692 passengers. Daily average passengers reached 70,000 people per day, +16% YoY. In Apr: Passenger traffic for domestic routes to Jakarta reached 336,743; Surabaya, 119,119; and Labuan Bajo, 51,474 For international routes, Singapore reached 241,213; Kuala Lumpur, 145,044; and Melbourne, 43,910 The top 3 arrivals were Australia with 141,634 tourists, India, 50,879, and China, 47,166

The Transportation Ministry is reviewing domestic airfares following an increase in airline operational costs. The Transport Ministry’s Director General of Air Transportation said global spare parts supply chain disruptions, higher contract prices, and USD exchange rate fluctuation increased the maintenance costs. He has proposed that the calculation for the upper fare limit for economy class domestic flights be revised, taking into account travel distance and duration, especially for short-haul domestic routes. They also proposed that this apply to jet aircraft only, not propeller aircraft

Thai Lion Air will launch a direct flight service connecting Surabaya-Bangkok from 30 May

Danantara revives talks with Boeing on the aircraft cooperation deal with Garuda Indonesia, which was put on hold due to the pandemic

Bloomberg reported that Garuda Indonesia is in talks with Danatara for a capital injection. The report stated the talks are in early stages and may not result in in deal. Garuda currently has around $1.4 billion USD more in debt than assets

AirAsia Indonesia’s first RedRun 2025 event recorded over 5,000 participants from 33 provinces of Indonesia and 40 countries. The event was held on 18 May in Nusa Dua, Bali. In 2024, AirAsia Indonesia accounted for 4.5 million international passenger movements, including 1.2 million foreign tourists. The airline launched “AirAsia Red Sale” seat promotion until 25 May, offering flights from as low as 0 IDR (before fees and baggage) to Singapore, Kuala Lumpur, Bangkok, and Brunei, and to domestic routes including Bali, Labuan Bajo, and Lampung

Indonesian President welcomed the launch of new flight routes from Bangkok and Phuket to Surabaya and Medan. He said this during the meeting with the Thailand Prime Minister. The President reaffirmed their commitment to improve economic cooperation with Thailand by holding the First Joint Trade Commission meeting