Abstract

<p>It is a study of the Indonesian airline policy and the need of developing market for air traffic. The�research is taken through the written policies of the heads of state and the ministers of communication�from 1950 to the reformation era, and the interinsular flight schedules that were developed throughout�the time. The primary objective of an understanding of an archipelagic conception of air communication�has become the major concern of the independent republic of Indonesia since its independence in1945.�It was to maintain a strategic consideration for national purpose. The result of which, the effort of�the transfer of the colonial airline system, the KLM, to the Indonesian national airline, the GIA, was�successfully achieved. As the national air traffic was subsidized by thegovernment, the commercial line�was partly subsidized for a national security reason to control the air traffic. Therefore, the Indonesian�air transportation is to bridge the need for integrating the archipelago for effort of ethnic integration<br />and for a national unity in a wide-spread region, despite the need for profit. However, some commercial�endeavors have been initiated in the post-Soeharto era, which resulted a breakdown ofcertain airline�companies. Facing the globalization, the policy would accommodate the air traffic businesses to develop�their facilities for fulfilling the demand of regional welfare, but yet to increasing the supervision of the�national policy on archipelagic stability.</p>

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