Scheduled flights: When one airline descends, another takes off
This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.
Bisnis Indonesia - Penerbangan berjadwal: Kala maskapai patah tumbuh hilang berganti
10 March 2025
By Artha Adventy and Ni Luh Anggela
The national aviation industry has not fully recovered from the Covid-19 pandemic. One indicator is that domestic air transport production has not yet reached pre-pandemic levels from 2019. According to data from Statistics Indonesia (BPS), the number of domestic air passengers in 2024 was only 63.7 million, falling short of the 2019 figure of 76 million passengers.
This underwhelming condition is one of the reasons why the new airline, BBN Airlines Indonesia, decided to close all its scheduled flight routes.
On 15 January 2025, BBN Airlines Indonesia, an Irish airline, announced the closure of its Jakarta-Surabaya flight route due to low market interest.
The closure of the route was also confirmed by Lukman F. Laisa, the Acting Director General of Civil Aviation at the Ministry of Transportation (Kemenhub).
According to him, the average load factor for the Jakarta-Surabaya route was only 43% from 27 September 2024 to 15 January 2025. For the period from 16 January 2025 to 29 March 2025, it was even lower, at just 5%.
In addition to the Jakarta-Surabaya route, BBN Airlines Indonesia has also closed the Jakarta-Balikpapan route due to low occupancy rates.
Information regarding the closure of these two remaining flight routes is corroborated by the disappearance of BBN Airlines' name from e-commerce platforms for airline ticket sales, such as Traveloka.
PT BBN Airlines Indonesia released a statement indicating that the company will shift its focus to the ACMI (aircraft, crew, maintenance, and insurance) leasing services business, with Sriwijaya Air as its first customer.
Martynas Grigas, Chairperson of BBN Airlines Indonesia, stated that this decision was made in response to the rise in domestic and international air travel, which is inversely proportional to the number of operating aircraft.
"This step aims to enhance operational efficiency and flight capacity in Indonesia, aligning with the growing demand for domestic and international air travel," Martynas stated in a recent official announcement.
He explained that the ACMI service enables BBN Airlines to provide aircraft, crew, maintenance, and insurance without independently managing operational aspects, thereby reducing costs and increasing efficiency.
With its extensive experience, BBN Airlines Indonesia has successfully established partnerships with various airlines, including Sriwijaya Air, to enhance flight capacity, particularly in the eastern region of Indonesia.
Not only domestically, BBN Airlines Indonesia has also successfully provided services for airlines in South Asia, such as Spice Jet, helping them operate domestic and international routes throughout 2024 to meet their flight capacity needs.
While scheduled domestic flights have not fully recovered from the pandemic, international flights have fully rebounded from the impact of Covid-19.
The recovery of outbound flights began in December last year, with 1.72 million passengers travelling abroad. This achievement matches the pre-pandemic levels of December 2019.
Cumulatively, the number of outbound air passengers from January to December 2024 reached 19 million, surpassing the 2019 figure of 18.86 million.
New airline
With the recovery of international routes, it is not surprising that foreign investors are interested in filling this market niche. One such investor is Calypte Holding Pte. Ltd., a renewable energy, aviation, and agriculture development company headquartered in Singapore.
On 7 March 2025, the company officially registered a new subsidiary through a notary to establish PT Indonesia Airlines Group.
Iskandar, Chief Executive Officer of Indonesia Airlines and Executive Chairman of Calypte Holding Pte. Ltd., stated that Indonesia Airlines will be based at Soekarno-Hatta International Airport, Cengkareng, Tangerang, Banten.
"Based on the business plan and feasibility study that has been prepared, Indonesia Airlines will focus solely on international flights. In the initial stage, it will operate 20 aircraft," Iskandar stated in an official announcement on Saturday (8/3).
The 20 aircraft will be introduced gradually, comprising 10 narrow-body aircraft (Airbus A321Neo or A321LR) and 10 wide-body aircraft (Airbus A350-900 and Boeing 787-9).
Iskandar described Indonesia Airlines as a scheduled commercial airline offering premium services. He mentioned that Indonesia Airlines combines the luxury of private jet travel with the comfort of commercial flights.
"We offer an unparalleled travel experience for passengers," he said.
In this regard, Indonesia Airlines offers special services that provide premium comfort, personalised attention, and world-class facilities previously reserved for private jet charters.
The vision of Indonesia Airlines is to become a global symbol of Indonesia's prosperity, an icon of celebration, and a beacon of hospitality, embodying the rich narrative of Indonesian culture.
The mission of Indonesia Airlines is to redefine travel with premium services.
According to him, the high mobility of the population in the Asia-Pacific region makes this business very promising for Indonesia Airlines.
"With the backing of aviation professionals, including both crew and management teams, Indonesia Airlines is confident in its ability to enter the new era of premium aviation," he stated.
He also promised that Indonesia Airlines would operate flights to 30 countries within the first five years.
Calypte Holdings is a relatively new player in the aviation sector, having started its business with Royal Jeumpa Airlines. The company has now launched Indonesia Airlines, aiming to serve international flights with a fleet of 20 aircraft.
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