Sat, 02 Apr 2005

Low-cost carriers

The initiative by the Indonesian government to close major airports to foreign low-cost carriers is totally wrong. It's actually the existence of competition that will ultimately lead to improvements in terms of the safety, cost, efficiency and quality of Indonesian airlines, and a better deal for consumers all round.

With the government's move, the ailing Indonesian airline industry, characterized by old, high cost aircraft (which are subject to constant technical delays and ultimately endanger people's lives), old-fashioned management and in some cases collusion with the regulators to sweep deficiencies under the carpet, will be protected and allowed to continue in its current deplorable state.

If the government wants to help Indonesian airlines to improve, it should pressure them about the age of their fleets, enforce maintenance regulations and let only those that have a sound financial basis continue to operate. So, it's truly amazing that the House of Representatives has come up with a protectionist move that will render local carriers complacent rather than forcing them to "shape up or ship out". Nobody can afford monopolistic structures in a world of competition.

MELINDA TAN Jakarta