INACA opposes FedEx flights

JAKARTA (JP): The Indonesian Air Carriers' Association (INACA) said on Thursday that direct flights by U.S. air cargo giant Federal Express (FedEx) to Jakarta threatened the country's airline industry and freight forwarders.

"I ask the government to allow FedEx to fly only to Jakarta airport and not to any other airports (in the country)," INACA's chairman Soelarto Hadisoemarto said.

He said he had heard that FedEx was planning to try to control air freight on Java island by investing in airport warehouses, container and other cargo transport vehicles.

He said domestic freight forwarders such as PT Cardig Air and PT Angkasa Pura already had warehouses at major airports and FedEx investments would undermine the domestic operators.

FedEx inaugurated five flights a week to Jakarta airport from its Asia-Pacific hub in Subic Bay in the Philippines on Wednesday after several years of negotiations on the rights.

Soelarto said the government had said foreign air cargo flights were not to be allowed to fly to Indonesia, except to Batam island, Riau.