Air Transport

Indonesia's largest privately-owned carrier Lion Air is proceeding with plans to manage airports.

The carrier is waiting on approval from Indonesia's ministry of transport to use and manage Jakarta's Halim Perdanakusuma International Airport, which is currently used by the Indonesian Air Force, Lion's president director, Rusdi Kirana, tells ATI today in Singapore.

Halim Perdanakusuma International Airport used to be Jakarta's main airport until the opening of Soekarno-Hatta International Airport in 1985.

Lion a few years ago reached an agreement with the Indonesian Air Force to operate and manage Halim airport and Rusdi says the two have established a new airport management company. Lion owns 80% of the company and the Air Force owns 20%, he adds.

The venture already has the approval of the defence ministry and the finance ministry and in waiting on approval from the transport ministry, says Rusdi, adding that in January the government passed a law allowing private companies to manage Indonesian airports.

He also says Lion has signed an agreement with the Indonesian Navy to develop and manage a section of Surabaya's Juanda Airport.

The navy controls this section of the airport and Lion plans to develop a passenger terminal and aircraft maintenance hangar there, says Rusdi.