Rejuvenation of Aircraft for Commercial Aviation

The Minister of Transport (“Minister”) has issued Regulation No. PM 7 of 2016 (“Amendment”)on the Amendment to Regulation No. PM 160 of 2015 on the Rejuvenation of Aircraft for Commercial Aviation(“2015 Regulation”).The issuance of the regulation has come in response to market surveys which have revealed that many prospective purchasers of freighter planes experience difficulties when buying secondhand planes which have been in operation for less than 20 years. The Amendment has been issued in order to extend the technical restrictions on airplane-age limits, as regards registration and operation within Indonesian airspace.The Amendment is of relevance to aviation and logistics companies, as well as to the government.Commercial Air-Aviation Safety and ComfortIt should be noted that the 2015 Regulation sets out a legal framework that aims to ensure aviation safety, both for commercial freight and for passenger planes. The main stipulation of the 2015 Regulation sets out technical requirements for the registration of aircraft with the Ministry of Transportation.Freighter-Plane LimitsFreighter planes which have been in use for more than 25 years can no longer be registered or operated within Indonesian airspace. [1] Previously, the 2015 Regulation set an age limit of 15 years. The additional 10 years added to the freighter-plane age limit allows freight aviation businesses the flexibility to choose a wider range of freight planes at lower prices.SafetyThe lifespan of freighter planes in Indonesia is now set at 40 years. Any freighter planes which have been operating for 40 years from a brand-new condition are no longer permitted to operate within Indonesian airspace. Previously, the 2015 Regulation did not set any such limitation. [2] It should be noted that not every country sets age limits for freighter planes operating within their jurisdictions. Indeed, some countries allow related parties to decide the airworthiness of freighters and/or passenger planes based on technical and business considerations. The general idea behind the operation of older planes is that the maintenance and operating costs are higher than those incurred by newer planes.The Amendment has been in force since 27 January, 2016._TM