Indonesian Government moves to stop the country’s airlines from selling heavily discounted fares have been attacked as a “counterproductive, unfortunate knee jerk response” that adds further complexity to an already over-regulated system.
The Centre for Asia Pacific Aviation said: “Indonesia should be deregulating its vibrant industry and instead focus on upgrading infrastructure to facilitate future growth and meet global standards.
“Indonesia’s domestic market has nearly doubled in size over the past five years and prospects for long-term growth remain bright.
“But growth slowed in 2014 as most airlines became unprofitable.
“This is hardly the time for new regulations that meddle in commercial matters and have nothing to do with operations or safety.”