New Indonesian Airline Planned Amid Growing International Demand

Plans are underway to launch a new airline in Indonesia to capitalize on growing demand for international air travel, as the country's overall international capacity is projected to rise by more than 6% during the upcoming summer 2025 season.

Singapore-based investor Calypte Holding, with interests in renewable energy, agriculture and aviation, has established a subsidiary called PT Indonesia Airlines Group, which will be based at Soekarno-Hatta International Airport in Jakarta.

The planned carrier, branded Indonesia Airlines, aims to position itself as a premium airline, operating exclusively on international routes. It intends to serve 48 destinations across 30 countries within its first five years.

Business planning and feasibility studies are currently underway, with plans to gradually acquire a fleet of 20 aircraft. The proposed fleet is expected to include 10 Airbus A321neo or A321LR narrowbody aircraft and 10 widebody A350-900s or Boeing 787-9s.

Details of the planned carrier come as international capacity from Indonesia continues to rise, with data provided by OAG Schedules Analyser showing that the number of departure seats will reach almost 14.8 million during the northern summer 2025 season. This marks a 10.7% year-on-year increase, and a 6.3% rise compared to 2019 levels.

Indonesia’s international air travel recovery has been among the strongest in Southeast Asia, second only to Vietnam, which is now 13% above pre-pandemic levels. In comparison, international capacity in Singapore and Malaysia has increased by 2.2% compared to summer 2019, while the Philippines remains 5.8% below pre-pandemic levels and Thailand lags by 11.7%.

According to an analysis of OAG data, 60 airlines are set to operate scheduled international services to and from Indonesia during the summer 2025 season. AirAsia Indonesia will lead the market with an 11.6% capacity share, followed by Garuda Indonesia at 7.9%, Singapore Airlines at 7.3% and AirAsia at 7%.

Seven new international routes are scheduled to launch during the season, including Thai Lion Air’s service between Bangkok Don Mueang International Airport and Bali’s Denpasar International Airport (DPS), as well as TransNusa’s new route from DPS to Guangzhou, China.

Additionally, Vietnam Airlines plans to introduce nonstop flights between Ho Chi Minh City and DPS starting June 1. The carrier will initially operate four weekly flights on Wednesdays, Thursdays, Saturdays and Sundays using A321 aircraft, with frequencies increasing to daily from July.