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Airlines warned play it safe or be closed

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Jakarta Post - March 16, 2007

Alvin Darlanika Soedarjo and M. Taufiqurrahman, Jakarta – An official fact-finding team proposed Thursday that the government revamp the aviation industry and shut down airlines that ignore safety regulations, following a series of recent deadly accidents.

"Revamp the management of transportation operators, liquidate operators that ignore safety rules and regulations," the National Team for the Evaluation of Transportation Safety and Security said in a nine-point recommendation to the government.

Led by former Air Force chief of staff Chappy Hakim, the team urged a comprehensive reorganization of air transportation regulating bodies, stressing the need to "put the right man in the right place".

"Licenses issued by regulators must be based on rules and regulations, not on negotiations and trade-offs," it said.

At a news conference, Chappy pointed to the negative effects of deregulation in the industry. He said that since the introduction of deregulation, there had been what he described as a "trade-off" in air operator licenses, resulting in an explosion in the number of airlines, not all of which had the necessary financial strength or experience to ensure safety standards were maintained.

"Such infractions have taken place, but we do not have the evidence to prove it," Chappy said. New Director General for Air Transportation Budhi M. Suyitno, also a member of the team, said the Transportation Ministry was considering drastic measures against airlines that failed to implement proper safety measures.

He said a team at the ministry was assessing individual airlines, and those found not in compliance with safety standards could have their licenses revoked.

"God willing, there will be a liquidation," he was quoted as saying by Antara news agency.

The team also recommended that the National Transportation Safety Commission (KNKT) be placed directly under the President. Placing the commission under the President would protect it from outside interference, it argued.

"We want it to be an independent body under the President just like the National Transportation Safety Board in the United States," Chappy said. Currently, the KNKT answers to the transportation minister, which the evaluation team said has affected its status as an independent investigator.

The commission has no powers to sanction transportation operators and its recommendations to the government are not legally binding.

The evaluation team presented its findings on the state of the country's transportation industry to the Transportation Ministry on Thursday.

The team also recommended the consolidation of air traffic control at the country's airports, which is currently under the shared management of state-owned airport operators PT Angkasa Pura I and II and the Transportation Ministry. "Make it one single provider, just like similar institutions available in Australia, the US or the European Union," the team said.

It also focused on poorly maintained radars and telecommunication equipment at the country's airports. "We call on the government to modernize (radars and other equipment)," it said.

In an earlier report to President Susilo Bambang Yudhoyono, the evaluation team highlighted safety infractions found in almost every quarter of the aviation industry.

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