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Bali News

Transport Minister: Indonesian Airlines will Not Collapse

Jusman Syafii Djamal Thinks Indonesian Commercial Carriers Can Weather the Current Economic Firestorm.


Bali News:
Click Image to Enlarge

(10/18/2008)

The Department of Transportation is working closely with the national aviation industry to anticipate the negative effects of the current global economic crisis.

According to the Minister of Communication, Jusman Syafii Djamal, national airlines may eventually encounter difficulties in securing aircraft leases and insurance as the result of a continuing economic downturn. "Fortunately," the Minister added, "the price of fuel is reducing. In addition, while the price of leasing aircraft is increasing, the lease contracts for most national airlines will not expire in the near future."

The Minister told Bisnis Indonesia that he is optimistic that the current financial crisis will not have a major negative effect on Indonesian aviation. He explained: "Businessmen in the transportation sector have already anticipated swings in the market. Until now, no ill effects have been detected and the government is working to keep the situation stabile."

Usman told the press that Indonesian operators are well experienced in confronting crisis and, for this reason, he did not think national airlines would be threatened with collapse.

Meanwhile, lower fuel prices are prompting the Department of Civil Aviation to actively review minimum price level guidelines imposed on national carriers by the government.


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