Boom or bust - Competition hots up for Indonesia’s budget airlines

Indonesia’s economic boom should be a bonanza for airlines clamouring for a slice of the world’s fourth-most populous country. But the bankruptcy of its No. 4 airline, Batavia Air, shows how smaller operators are finding it hard to survive.

Batavia became the second budget carrier to run into debt problems in Indonesia in the past two years - a victim of the extremely tight operating margins that exist in what is a crowded market.

And more are likely to go bust.

via Business feed http://www.scmp.com/business/companies/article/1145235/boom-or-bust-competition-hots-indonesias-budget-airlines