New Provisions on Paid-up Capital and Route Permits for Airlines

With the ultimate goals in mind of boosting growth within the air-transportation sector and easing the issuance of permits for new flight routes to airlines, the Ministry of Transportation (“Ministry”) has issued Regulation No. PM 38 of 2007 (“Ninth Amendment”), which amends Ministry Regulation No. KM 25 of 2008 on the Organization of Air Transportation (“Regulation 25/2008”). [1] In essence, the Ninth Amendment simplifies a number of provisions which address the following matters: 1) Paid-up capital; 2) Permits for new flight-routes and 3) The management of accidents and/or serious incidents.Prior to the issuance of this Ninth Amendment, Regulation 25/2008 had previously been amended several times, most recently through the issuance of Ministry Regulation No. PM 56 of 2016 (“Previous Regulations”). [2] Paid-up CapitalThe Ninth Amendment stipulates that paid-up capital for any airline company should comprise of: [3]