Study on Business of AIRLINE Industry in Indonesia – Indonesian Airline Industry has found its prosperity era in the last seven years (2011 – 2017). The peak occurred in 2017. With population of more than 250 million people and medium class society which grows rapidly have made the need and services of flight services in entire Indonesia to keep on rising. Based on a survey of CDMI that total passengers in 2011 reached 68 million people and in 2016 total passengers had reached 100 million people and predicted to achieve 105 million people in 2017.
Although the potential of total passengers keeps on increasing, some national airline companies have failed and finally closed down. In 2013, PT Metro Batavia (Batavia Air) had to cease its operation after being stated to be bankrupted by commercial court in 2014. PT Merpati Nusantara had to take bitter pill by ceasing its operation in December 2013. PT Mandala Airlines (Mandala Air) was stated to cease its operation as of 1 July 2014. The cause of their failure was the continuous loss and finally bankruptcy.