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Managing Turbulence — How Australian and Indonesian Airlines Rise to Challenges in the Aviation Business

AUSTRALIA-AVIATION-FIRE

Workers check the runway as a Qantas plane prepares to take off behind them at Sydney International Airport on November 8, 2024. Source: AFP / DAVID GRAY/AFP via Getty Images

Both in Indonesia and in Australia, the aviation business has its own challenges, one of the biggest being the financial challenge in the aviation world.


After 20 years, Jetstar Asia, which was part of the low-cost airline Jetstar from Australia, has ceased operations.

These costs are expected to rise and, therefore, it will be challenging for the airline to maintain its offers of low fares.

Garuda Indonesia is Indonesia's national airline founded in 1950 and is a State-Owned Business Entity grappling with various challenges such as fierce competition and high costs.

In the first quarter of 2025, the company had a loss of 86.82 million US dollars (about 132.24 million Australian dollars).

SBS Indonesian spoke to Jetstar representative and the Senior Economist of the Institute for Development of Economics and Finance (INDEF) to talk about the challenges in the aviation world in Indonesia and Australia.

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