New airlines entry a gamble in Indonesian domestic market headwind

Flag carrier Garuda Indonesia and Lion Air are estimated to serve between 70 and 80 per cent of domestic passengers annually. - The Jakarta Post/ANN

JAKARTA: Experts and industry players balk at the notion that the entry of three new private airlines this year will lead to a rebound in air travel as the industry struggles to regain its pre-pandemic footing.

Newly established carriers, namely Fly Jaya, Indonesia Airlines and Mukhtara Air will be wading into a high-risk domestic market where softening demand, soaring operational costs and outdated policies had stunted recovery, they warn.