Expand or be replaced by global rivals

Most government ministers take the diplomatic route when opening major industry conferences. But not Indonesia’s transport minister, Ignasius Jonan. In Bali, he told local airlines to improve their safety oversight and prepare for international competition.

by TOM BALLANTYNE FROM BALI  

December 1st 2015

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But it could be worse if Garuda is not prepared to take up more overseas air rights, the country’s transport minister, Ignasius Jonan, said in a curt public message to Garuda Indonesia president, Arif Wibowo, when he opened the 59th Assembly of Presidents of the Association of Asia Pacific Airlines in Bali last month.

In an unexpectedly hard-hitting speech, he urged Indonesian airlines to launch more international routes and said if they did not they could lose those air rights to foreign carriers. Jonan told delegates he had talked to Emirates and Etihad Airways, among other carriers, and told them that if Indonesia’s airlines were ready to launch more international routes, they would be granted the rights, “but if they are not ready, we will offer them to international airlines”.

The minister, who oversaw Indonesia’s railways before he became the transport minister, said the country wanted to expand tourism. “I like competition and I think that through competition airlines operate even better,” he said.

He also delivered a stern warning to local carriers about their safety systems. “When I was appointed as the minister, I could see that airline safety levels were quite poor. There is no need to compromise for safety,” he said.

Since he took office, Jonan has imposed sanctions on several smaller airlines that have violated safety standards. At the Assembly, Jonan said his ministry would invest US$1 billion in improving safety in Indonesia’s public transportation sectors, including aviation. He said the funds will go towards programs to improve runways, ATC systems and airport operations.

Most Indonesian airlines were losing money but safety must still be there top priority, he said. “My job is to impose the safety program.”

AAPA director general Andrew Herdman said air safety is a collective effort and a collective success that was a role model for other industries. The trend in global commercial air transport safety performance was one of dramatic improvement, with the annual accident rate now approaching the one in 4-5 million flights per year on a global basis, he said.

However, Herdman acknowledged that in the Asia-Pacific, the safety rate trend was now flat. “We must ensure that the quality and consistent of safety oversight are commensurate with growth,” he said.