The Indonesian government has recently issued Regulation of the Minister of Communication No. 25 Year 2008 on the Undertaking of Air Transport (Ministerial Regulation 25) which is intended to replace the revoked Decree of Minister of Communication No. KM 81 of 2004 concerning the Undertaking of Air Transport.
In this Ministerial Regulation 25, we note of several new provisions, among other things:
(i) bank guarantee which is required in the establishment of an airline company;
(ii) the minimum aircrafts that must be owned and/or controlled by the airline company;
(iii) provisions concerning pioneer flight that may only be undertaken by scheduled airline;
(iv) compensation to passengers for flight delays, and
(v) provisions concerning foreign airlines to engage in aviation business in Indonesia.
While the implementation of some provisions under the Ministerial Regulation 25 remains unclear, the issuance of this Ministerial Regulation is, however, expected to promote improvement in airline business in Indonesia.
In this Ministerial Regulation 25, we note of several new provisions, among other things:
(i) bank guarantee which is required in the establishment of an airline company;
(ii) the minimum aircrafts that must be owned and/or controlled by the airline company;
(iii) provisions concerning pioneer flight that may only be undertaken by scheduled airline;
(iv) compensation to passengers for flight delays, and
(v) provisions concerning foreign airlines to engage in aviation business in Indonesia.
While the implementation of some provisions under the Ministerial Regulation 25 remains unclear, the issuance of this Ministerial Regulation is, however, expected to promote improvement in airline business in Indonesia.
Said, Sudiro & Partners
Indonesian Legal Consultants
Sampoerna Strategic Square
South Tower, Level 18
Jl. Jend. Sudirman Kav. 45 - 46
Jakarta 12930 Indonesia
Phone: (62-21) 575.0983
Fax: (62-21) 575.0803
Emails: mail@ssplegal.com
P.O. BOX 8211 JKS.SB
Jakarta 12920
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