BBN Airlines, a new airline in Indonesia, has officially ceased all of its commercial flights after just five months of operations. The airline, which began flying on September 27, 2024, has now shifted its business focus from offering commercial flights to leasing aircraft.
Minister of Transportation Dudy Purwagandhi confirmed the decision, stating that BBN Airlines no longer operates flight routes in Indonesia. Instead, the company has moved towards leasing aircraft.
“It seems that they are not so ready or have changed their business from operating flights to only renting out their aircraft to Sriwijaya,” Purwagandhi explained, as reported by Suara.com.
The move comes amid global challenges in the aviation industry, which is still recovering from the effects of the COVID-19 pandemic. The two major aircraft manufacturers, Airbus and Boeing, are still recovering, leading to a global shortage of available aircraft. This situation has created a unique opportunity for aircraft leasing companies.
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“Given the limited number of aircraft available worldwide, it is not easy for us to get an aircraft,” said Purwagandhi. “However, the aircraft leasing business has become a promising opportunity at this time.”
BBN Airlines’ Jakarta-Balikpapan Route Ceases Operations
In addition to halting its commercial flights, BBN Airlines also ended its Jakarta (CGK)-Balikpapan (BPN) route in late October 2024. The Ministry of Transportation had requested the airline to fully refund passengers after the route failed to meet market demand, with load factors averaging just 20-25 per cent.
“The route stopped operating on October 29, 2024, due to low demand. We have asked BBN Airlines to provide clear information to passengers and ensure they receive a 100% refund,” said Acting Director General of Air Transportation, Lukman F. Laisa. “This is essential for maintaining customer satisfaction and trust.”
Lukman also stated that the Ministry supports airlines in adjusting their services to market conditions.
“The decision to stop routes with low demand is a natural response to market dynamics, as long as passengers are not harmed,” he added.
