Illustrative photo (Source: AFP/VNA) According to Agus, domestic Indonesian airlines namely Garuda Indonesia andCitilink, Sriwijaya and NAM and Lion Air Group) also have to face with the compulsoryfinancial obligations from both domestic and international financialinstitutions/banks, pushing these companies to the brink of bankruptcy. Recently,several airlines such as Garuda Indonesia (GIAA), Lion Air and Batik Air havehad to shut down their branches in Alice Spring or Port Headland, Australia, showing the financial decline of the airlines.
Some airlines have tried to maintain the operation by implementing aseries of solutions such as cutting wages and laying off employees, but it seemsto have no significant effect. GIAA reported revenue of 353.07 million USD in the first three months of2021, down 54.03 percent year-on-year. Lion Air alsofailed to solve the financial crisis after laying off more than 8,000 employeesand operating at only 15 percent of its capacity. Meanwhile, the aviationindustry is one of the most vulnerable sectors to currency fluctuations andfuel prices, so the more vulnerable the sector is, the longer the recovery willbe.
Aviation safety in Indonesia is also an issue during thepandemic. Staff and flight hours are reduced, maintenance and repair ofequipment in the cockpit, passenger compartment or aircraft engine can hardlybe carried out as they used to be. Over the past five years, many aviationsafety issues have been overlooked.
Accordingly, Agus suggested Indonesia'saviation business need the state's support as soon as possible, especially inresolving outstanding debts. The Ministry of Transport, the Ministry of StateEnterprises, the Ministry of Manpower and the Ministry of Finance should comeup with a roadmap to deal with the post-pandemic consequences and implement itsoon./.
VNA
