Indonesia AirAsia X receives air service license

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Indonesia AirAsia X (IAAX) has received an air service license from Indonesia’s authorities, taking it one step closer to launching services.

AirAsia X says in a statement to the Malaysian stock exchange that IAAX received the license on 23 January from Indonesia’s Directorate General of Civil Aviation. It will now move ahead with a submission seeking approval for an air operator’s certificate.

AirAsia X holds a 49% stake in the joint venture, with the remaining 51% held by conglomerate Kirana Anugerah Perkasa (KAP). KAP has the same Indonesian shareholders in Indonesia AirAsia, AirAsia X says.

The Malaysian airline will invest up to $14.7 million in tranches between 2014 and 2016 into the joint venture carrier, while KAP will invest $15.3 million.

The Indonesian joint venture will operate from a hub at Denpasar, and intends to operate flights to North Asia and Australian markets. It will also have a feeder relationship with Indonesia AirAsia.

The carrier has not yet announced when it intends to start operations, or how many aircraft it plans to start with. Nevertheless, it is expected that it will lease Airbus A330-300s from AirAsia X.

IAAX is the second international affiliate for AirAsia X. Last year it entered into a joint venture agreement with Thai AirAsia chief executive Tassapon Bijleveld and local entrepreneur Julpas Kruesopon to establish Thai AirAsia X, which is planning to commence operations in the first quarter of 2014.