Decline in Domestic Air Passengers, Here Are the Reasons

Aviation expert Alvin Lie stated that Indonesia’s domestic air passenger market has declined since 2018, from 102 million passengers to only around 70 million domestic air passengers per year. This is caused by several factors.

“Besides the sluggish domestic economy and higher ticket prices, the lack of domestic market competition is also one of the causes,” Alvin said in a written statement in Jakarta on Thursday (14/5/2026).

Alvin conveyed that several airlines, such as Mandala Airlines and Sky Aviation, exited the market due to competitive dynamics and capital issues, and government policies from the 2015-2016 era further burdened the industry. The policy limiting the maximum age of imported aircraft to 15 years created high entry barriers for new airlines, as it forced them to bear much higher fleet leasing costs.

Then in May 2020, based on Ministerial Decree No. 115 of 2020, the government raised the aircraft age limit to 20 years. However, Alvin continued, from an aviation perspective, this is still not sufficient and greatly limits the types of aircraft that Indonesian airlines can import domestically.

“Aircraft age often becomes a benchmark for the public in assessing flight safety levels,” Alvin said.

However, in the aviation industry, Alvin stated that calendar age of aircraft is not the main factor determining reliability or safety level. Alvin conveyed that a far more important factor is airworthiness, which is the condition of the aircraft ensured to remain safe for operation through strict and ongoing maintenance standards.

Alvin explained that aircraft cannot be equated with ground vehicles in terms of operational age. According to him, aircraft that are considered old in age, whether 10, 20, or 30 years, can still operate safely as long as they meet aviation safety principles.

“Aircraft cannot be equated with other vehicles. Aircraft that are so-called old, whether 10, 20, or 30 years old, can still be maintained with three main principles,” Alvin added.

Alvin said the three main principles include tiered maintenance, safe life and fail safe, as well as basic airworthiness principles. He conveyed that tiered maintenance is carried out through routine and strict inspections, from A-Check to D-Check.