aviation

The Newly Established BBN Airlines In Indonesia Is Attempting To Test Its Fortune In The Aviation Industry

BBN Airlines Indonesia has officially ceased operations for all scheduled flight routes after gradually shutting them down one by one. The primary reason for this decision is the low occupancy rate, or load factor. The airline first deactivated the Jakarta (CGK) - Balikpapan (BPN) round trip in November 2024. At that time, Rosye Risandy, the Head of Marketing for BBN Airlines Indonesia, stated that the CGK - BPN route was under review due to its low occupancy. "We are committed to taking the necessary steps to address the challenges we have faced and to enhance our services moving forward. Currently, we are reassessing the Balikpapan route," Rosye informed Bisnis on Tuesday, November 5, 2024. 

Rosye indicated that the review was indeed related to operational issues, specifically the insufficient market demand, which resulted in an average load factor of only 20%-25%. The closure of another route occurred on January 15, 2025, specifically the Jakarta-Surabaya-Jakarta (CGK-SUB-CGK) route. Ironically, this route had only been launched by BBN on September 27, 2024, and thus had a very short operational lifespan. Once again, market interest and alignment with network strategy were identified as significant factors. 

BBN achieved an average load factor of just 43% for the CGK-SUB-CGK route from September 27, 2024, to January 15, 2025, and a mere 5% from January 16, 2025, to March 29, 2025. This decision was documented in a letter numbered PTBBN-SD-2025-01-08/352 dated January 8, 2025, which has been received by the Ministry of Transportation. Recently, the remaining two routes, Jakarta (CGK) - Denpasar (DPS) and Jakarta (CGK) - Pontianak (PNK), have also been discontinued by the airline. The closure of these two remaining flight routes is corroborated by the removal of BBN Airlines from e-commerce platforms for ticket sales, such as Traveloka. BBN Airlines has declined to comment when approached by Bisnis regarding this information. 

Tag: Aviation Industry Balikpapan BBN Airlines BPN CGK Jakarta