More International Airport Labels Are Wasted

Airlines must collaborate with many parties so that they can create new businesses that are mutually beneficial.

KOMPAS/RHAMA PURNA JATI

Scoot airline during its first flight at Sultan Mahmud Badaruddin II Airport, Palembang, to Singapore.

We are always easily proud of international labels even though sometimes they don't provide much benefit. The status of international airport is also the same, it has no impact.

The government revoked the international status of 17 airports out of 34 international airports to encourage the recovery of the national aviation sector. Even though they have international status, some of them only serve flights to nearby countries. Indonesian airports only act as feeders to other countries.

The Ministry of Transportation has just downsized international airports, from 34 to 17 airports. The aim is to encourage the national aviation sector which had slumped during the Covid-19 pandemic. This is stated in Ministerial Decree Number 31/2024 concerning the Designation of International Airports on April 2 2024 (Kompas.id, 27/4/2024).

We agree with the government's decision to revoke the international status of 17 airports that only serve one or two countries, and even then, only as feeders for larger airports abroad. These airports do not bring many benefits to the country and the local community, such as the arrival of a large number of foreign tourists through these airports. Instead, local residents flock to travel abroad.

Trips like this actually erode foreign exchange. They buy US dollars or other foreign currencies and spend them while abroad. This lifestyle of citizens sometimes also increases consumerism which creates social jealousy.

KOMPAS/AGUS SUSANTO

Flight activity at Hong Kong International Airport on Tuesday (10/10/2023). The international aviation industry is gradually recovering after being down for three years due to the pandemic.

Also read: Government Revokes International Status of 17 Airports

We also agree with the government's intention regarding the closure of the international airport status in several areas in order to promote the recovery of national flights. Due to the pandemic, there have been many closures of routes, both domestic and international.

National airlines have not fully recovered as they had to renegotiate with financial institutions and aircraft leasing companies due to the pandemic. They are still struggling with internal improvements. The decision by the Ministry of Transportation is expected to restore passenger volume until the airline business returns to normal.

Nevertheless, for the improvement of the airline business, we hope that airlines will also start considering new business models when the margins from aircraft ticket sales decrease. Some foreign airlines have taken this step and are exploring new business opportunities in the aviation industry that do not rely solely on flights, but on airport management and other businesses.

A new business model is expected to no longer rely solely on ticket sales. Airlines are used more to gather people. Neighboring airlines have taken this step so that passengers can get tickets at a cheaper price, but they will be charged when they are in the home country of the airline.

Therefore, airline companies must collaborate with many parties, such as airport managers, food and beverage industries, tourism industries, and conference industries, in order to bring about mutually beneficial new business ventures. Everyone must innovate.