Thursday, December 17, 2015

Haze control and oil palm smallholders - article published by The Habibie Center

Just to share our article on the Southeast Haze and smallholder issues.

17 December 2015: Updating with link to report on Felda case study by LMC International and note on 9 December 2015 Indonesia simultaneous local elections.


November 2015: Haze Control through the Sustenance of Indonesian Oil Palm Smallholders by Khor Yu Leng, Johan Saravanamuttu and Deborah Augustin.


Southeast Asia has arguably seen the worst-ever, certainly the longest, peat-driven haze-smoke pollution between September and November 2015.1 Some 43 million Indonesians were exposed continuously to toxic smog in Kalimantan and Sumatra. In neighboring Singapore and Malaysia, unhealthy to hazardous levels of haze-smoke were recorded causing the closing of schools and great consternation among the public. A number of Singaporean supermarkets stopped the sale of some products of alleged haze-causing companies..... haze pollution has continued on a yearly basis since 1997, due primarily to the burning on peatlands in Sumatra and Kalimantan. In 2015, fires have burned some two million hectares of land and over 100,000 fires have occurred. While El Nino climatic conditions exacerbate the situation, scientists consider it no longer a controlling factor, given the regularity of the problem.....

Going beyond reactive policies vis–à–vis the haze such as: (i) boycotts (possibly counter-productive), (ii) buying sustainably certified products (of rather limited reach and expected to create multi-tier prices, suppressing prices for its less desired peat zones) and (iii) suing and penalizing companies; we suggest several policy measures which would address a longer-term solution to the problem. In October, Indonesia’s attention rightly turned to the interests and prospects of its oil palm smallholders. At bottom line, what is required to handle the peat haze-smoke problem are proactive solutions......

Erratum on Pg 8 (previous version), corrected as follows: In fact, recent data from the Global Forest Watch website for 1 July to 2 November 2015 show that only 10 percent of fire alerts were on oil palm concession areas and 26 percent on pulpwood concessions.


You can find the article by downloading the Nov 2015 newsletter by The Habibie Center by clicking on this link:  http://admin.thcasean.org/assets/uploads/file/2015/11/Thinking_ASEAN_November_2015.compressed.pdf
Referring page: http://www.thcasean.org/publication - newsletters section




About the authors

We are also part of the LMC International team for a review of the Malaysia Felda smallholders project (released in early December 2015); referring page: http://www.carbonstockstudy.com/resource-centre/reports please refer to Consulting Report 12 – The Felda case study:  http://www.carbonstockstudy.com/carbonstockstudy/files/94/94ad98bf-119c-47c5-a355-1900822a6e04.pdf (excerpt below)

Source: Consulting Study 12: The Felda case study, LMC International Ltd. This study was conducted between March to April 2015 by Yuleng Khor of LMC with research associates Dr Johan Saravanamuttu and Deborah Augustin.


Synthesis meeting of HCS+ study consultants, source: http://www.carbonstockstudy.com/resource-centre/gallery/synthesis-meeting



Also in the same newsletter by The Habibie Center, some interesting infographics with CIFOR data on page 11:

 
Editor's note: The above focusses on land development phase. There are is also the (post land clearance) fire-haze-smoke zone labour and product supply-chains to consider. Local elections were held for 9 gubernatorial, 224 regent and 36 mayoral seats in Indonesia on 9 December 2015 - the first time that local elections are held simultaneously in one day. 



Nov 2015 newsletter by The Habibie Center by clicking on this link:  http://admin.thcasean.org/assets/uploads/file/2015/11/Thinking_ASEAN_November_2015.compressed.pdf
referring page: http://www.thcasean.org/publication - newsletters section






Other think tank and academic papers on the political economy of palm oil by this blog editor:

Tuesday, December 8, 2015

Air Asia news (update 8): AirAsia Flight 8501 Indonesia orders inspections, AirAsia pilots call in sick, Aircraft engineers press statement on cost pressure and unrealistic flight schedules

8 December 2015: Indonesia orders inspections, AirAsia pilots call in sick, Aircraft engineers press statement on cost pressure and unrealistic flight schedules

Indonesia Orders Airbus A320 Inspections After Crash Report by Fathiya Dahrul and Chris Brummitt December 3, 2015; Planes to be grounded if any repeat faults, ministry says. Investigator says Airbus recommended improving component.... Indonesia will inspect all Airbus Group SE A320 planes in the country and ground any with repeated faults, on the recommendation of investigators into the crash of an AirAsia Bhd. flight last December. A report released Tuesday cited a crack in the soldering of an electronic component on an A320 rudder, as well as pilot errors in responding to the issue, as reasons for the Dec. 28 crash of AirAsia Flight 8501. The head of the crash investigation told Bloomberg Thursday that in recent months Airbus has researched the component in question and recommended improvements. http://www.bloomberg.com/news/articles/2015-12-03/indonesia-orders-airbus-a320-plane-inspections-on-crash-report

Hundreds stranded at KLIA2 as AirAsia pilots call in sick - December 2, 2015 See more at: http://www.themalaymailonline.com/malaysia/article/hundreds-stranded-at-klia2-as-airasia-pilots-call-in-sick#sthash.atPCJtHl.dpuf

AirAsia plane that crashed into Java Sea flew to Perth 38 times by Geoffrey Thomas December 5, 2015 https://au.news.yahoo.com/thewest/wa/a/30279792/fatal-air-asia-crash-plane-serviced-wa/

Aircraft engineers: "Air Asia accident highlights safety lessons not being learned"....AMSTERDAM, The Netherlands December 7, 2015 /PRNewswire - The CEO of Air Asia assures us that: "We will not leave any stone unturned to make sure the industry learns from this tragic incident." Although the Air Asia CEO comments are undoubtedly genuine, the fact is that without significant changes in attitude and commitment from CEO's and regulators on a global level, it could happen again.
This avoidable accident regrettably highlights that the industry as a whole has learnt little from two previous tragic accidents. The investigations into the "Spanair" and "Turkish Airlines" accidents (2008, 2009) highlighted very similar causal factors.
• Non reporting of defects.
• Inadequacies in the maintenance system allowing a repetitive low key fault, culminate in an avoidable accident.
• Crew training issues.
• Ineffectiveness of the current regulatory oversight system which consistently fails to detect safety issues prior to an accident whilst the same issues are detected immediately post-accident.
The public must be made aware that aviation today is driven by cost. Cost, not safety, is paramount. Pilots and Engineers are often placed under increasing pressure to accept second best, in order to ensure aircraft meet unrealistic flight schedules. The consequences of which are more incidents and ultimately more avoidable accidents.
With training of pilots and engineers often the bare minimum, spares and manpower levels reduced to unacceptable levels, and increased workloads; the working life of these safety professionals has become centred on lowering costs. The lesson to be learnt from this and other avoidable accidents is, that it is now time for the industry to listen to, and properly support, safety professionals trying to keep flying safe.
To that end Aircraft Engineers International are calling for the following reforms...
http://www.prnewswire.com/news-releases/aircraft-engineers-international-air-asia-accident-highlights-safety-lessons-not-being-learned-by-aviation-industry-560846141.html


1 December 2015: AirAsia Flight 8501 Crash Caused by System Malfunctions, Pilot Response - solder problem had come up 23 times in the previous 12 months... responses to the problem were inadequate; AirAsia questions about accounting and cash flow


AirAsia Flight 8501 Crash Caused by System Malfunctions, Pilot Response - Crash report depicts confusion and escalating trouble in the cockpit By  Ben Otto in Jakarta, Indonesia, and Andy Pasztor in Los Angeles  Updated Dec. 1, 2015... Reflecting further lack of crew coordination, the report indicates the captain also was manipulating his control stick almost from the instant the stall warning activated to the time flight-data recording ended. In an emergency, cockpit discipline requires one of the two pilots to take over the controls and make all flight inputs.... After six separate orders by the Indonesian captain to “pull down, pull down” the first officer, who was French, replied in his native language: “What is going wrong,” according to the report.... That rise led to the fatal stall, Mardjono Siswosuwarno, lead investigator for the crash, said..... Investigators found the solder problem had come up 23 times in the previous 12 months, gaining in frequency in recent months. They suggested responses to the problem were inadequate.... .... The circuit breakers had been reset three days earlier by mechanics during troubleshooting on the ground. The report describes a series of discussions between ground staff and the flight’s captain, including an exchange in which the captain was told he could “reset [the breakers] whenever instructed” by computerized warning messages..... http://www.wsj.com/articles/rudder-system-failure-contributed-to-airasia-flight-8501-crash-1448956384?mod=djem10point


Accounting issues at Air Asia



UPDATE 1-AirAsia's planned accounting change seen boosting transparency By Anshuman Daga and Praveen Menon Nov 27, 2015  * AirAsia seeks to consolidate group accounts  * Move comes six months after accounts criticised  * AirAsia shares fall as much as 7 pct on Q3 net loss (Adds analyst comments, context)...On Thursday, AirAsia said it swung into a net loss in the third quarter after booking a large writedown on its money-losing Indonesian operations and foreign exchange losses. Its shares fell as much as 7 percent on Friday, hitting a nearly two-month low though trading still comfortably above multi-year lows struck in August.  The airline also said earnings missed forecasts at its Indonesian and Philippine associates, which have high debts to AirAsia....  http://www.reuters.com/article/2015/11/27/airasia-stocks-idUSL3N13M17L20151127#fAGlMZT7IgUTlyc0.99

AirAsia and Associates Need Course Correction - shares have rightly tumbled as investors question how the carrier accounts for relationships with associate airlines By  by Alex Frangos  June 18, 2015...GMT has rightly struck a nerve with investors. The crux of the argument is that heavily indebted AirAsia, listed in Malaysia, depends too much on struggling associate airlines that share its brand name, but operate semi-independently in countries around Asia, to pay it fees. These payments flatter the parent’s bottom line, while obscuring its true health... Much of that transfer is done through airline leasing agreements between the parent, which owns or leases the planes, and the associates who operate them. The parent charges fees for leasing, maintenance, insurance and the like, and in some cases sells planes outright at a profit to the associates, according to GMT. These deals have caused related party transactions at the parent to rise to 213% of operating profit last year, from 22% a decade ago.... What’s troubling is those deals are often not resulting in cash payments to the parent, implying the associates themselves are struggling. Amounts owed by related parties have swelled to 2.8 billion ringgit ($750 million) at the end of March, equivalent to 60% of shareholder equity. The
amount outstanding at the end of 2010 was just 380 million ringgit, or 10% of equity.
http://www.wsj.com/articles/airasia-and-associates-need-course-correction-1434603210

AirAsia shares fall on questions about accounting and cash flow by Jeremy Grant in London June 17, 2015;... Shares in AirAsia fell almost 7 per cent on Wednesday amid investor concern over analysts’ reports that have questioned the sustainability of the low-cost carrier’s business. The move came as AirAsia revealed plans to raise $200m through the issue of convertible bonds for its lossmaking Indonesian and Philippine units, ahead of a proposed stock market listing for each business by 2017. http://www.ft.com/cms/s/0/31360c22-14ba-11e5-a51f-00144feabdc0.html#axzz3t4e8tee4

AirAsia replaces chief February 2, 2015  by Jamie Freed Low-cost long-haul carrier AirAsia X has replaced chief executive Asran Osman-Rani and will raise 395 million ringgit ($140 million) to shore up its balance sheet as a result of deep financial losses, including on flights between Kuala Lumpur and Australia. AirAsia X, which competes for budget traffic between Australia and Asia against Jetstar International and Scoot, lost $96 million in the Australian market in the nine months to September 30, 2014. It has yet to report its December quarter results. The airline on Friday said a new management team would spearhead a "reorganisational and turnaround exercise" that would strengthen the company's balance sheet and maximise profitability. http://www.smh.com.au/business/airasia-replaces-chief-20150201-1335tf.html#ixzz3t4eipjzg


31 January 2015: France opens criminal investigation of crash, French co-pilot's family separately filed charges against Air Asia for endangering lives for lacking the proper permission for the flight


QZ8501: French judge to probe crash, possible ‘manslaughter’ Published: January 31, 2015 08:19 AM PARIS, Jan 31 — France has opened a formal criminal investigation into the crash of an AirAsia plane in the Java Sea last month while a French co-pilot was at the controls, a judicial source said yesterday A judge will investigate possible “manslaughter” in connection with the crash that killed all 162 people on board.... Plesel’s family in France separately filed charges against AirAsia Indonesia for “endangering the life of others” as the airline did not have permission to carry out the flight between Surabaya and Singapore on the day of the crash. “Remi Plesel’s family are delighted at this criminal investigation which, we hope, will reveal the truth,” said their lawyer Eddy Arneton. “It will allow us to finally ask the right questions.” — AFP http://www.themalaymailonline.com/malaysia/article/qz8501-french-judge-to-probe-crash-possible-manslaughter#sthash.lagimzd8.dpuf

Captain of AirAsia QZ8501 'out of his seat' before plane lost control: Report UPDATED: 31 Jan 2015 13:59; SINGAPORE: The captain of AirAsia Flight QZ8501, which crashed into the Java Sea on Dec 28, 2014, had left his seat before the plane lost control, according to Reuters on Saturday (Jan 31). Captain Iriyanto “was out of his seat conducting an unorthodox procedure when his co-pilot apparently lost control, and by the time he returned it was too late to save the plane", two unnamed sources familiar with the investigation told Reuters. http://www.channelnewsasia.com/news/asiapacific/captain-of-airasia-qz8501/1628328.html

30 January 2015: Pilots disabled computers, triggering events leading to crash


AirAsia disaster: pilots disabled computers moments before crash By Herdaru Purnomo January 30, 2015 Jakarta: The pilots of AirAsia flight 8501 cut power to a critical computer system that normally prevents planes from going out of control shortly before it plunged into the Java Sea, two people with knowledge of the investigation said. The action appears to have helped trigger the events of December 28, when the Airbus A320 climbed so abruptly that it lost lift and it began falling with warnings blaring in the cockpit, the people said. All 162 aboard were killed.... The pilots had been attempting to deal with alerts about the flight augmentation computers, which control the A320's rudder and also automatically prevent it from going too slow. After initial attempts to address the alerts, the flight crew cut power to the entire system, which is comprised of two separate computers that back up each other, the people said.... Flight 8501 climbed more than 1,524 metres in less than 30 seconds, rising above the altitude where it was authorised to fly, Ertata Lananggalih, an investigator with Indonesia's National Transportation Safety Committee, said in Jakarta on Thursday.... The co-pilot, with 2247 hours of flying experience, was at the controls and talking to controllers while the captain, who had 20,537 hours, was monitoring, said Mardjono Siswosuwarno, the lead investigator of the crash. The account was the first description of the last moments of the flight..... http://www.theage.com.au/world/airasia-disaster-pilots-disabled-computers-moments-before-crash-20150129-131qq4.html


20 January 2015: QZ8501 likely stalled after abnormally steep climb?


AirAsia Jet Climbed at Rates Beyond Design of Commercial Planes By I-Made Sentana And 
Gaurav Raghuvanshi  Jan. 20, 2015 8:08 a.m. ET; Plane Climbed at Rates Over 8,000 Feet Per Minute, Transport Minister Says... JAKARTA—Data broadcast from the  AirAsia  jet that crashed on Dec. 28 into the Java Sea killing all 162 people aboard show that the aircraft climbed and descended at extreme rates before disappearing, Ignasius Jonan, Indonesia’s transport minister, said in Parliament on Tuesday.... The plane had requested a diversion and a climb to a higher flight level apparently because of bad weather of but air-traffic controllers weren't able to approve the changes immediately because they wanted to check if other aircraft were flying in the vicinity. By the time the controllers tried to contact the pilots with permission to climb higher, the aircraft was lost. The minister said commercial aircraft aren’t designed to climb at the rates the plane appears to have ascended in the radar logs.... An AirAsia pilot said the normal rate of climb of an A320 jet is between 1,000 feet per minute and 1,200 feet per minute and planes rarely climb at rates more than 1,500 feet per minute on their own. The steep rate of ascent could likely be explained by the aircraft getting caught in an updraft of air in bad weather, the pilot said on condition he not be identified.... http://www.wsj.com/articles/airasia-jet-climbed-at-rates-beyond-design-of-commercial-planes-1421759312

QZ8501 plane likely stalled after steep climb: minister POSTED: 20 Jan 2015
JAKARTA: An AirAsia plane that crashed into the Java Sea last month with 162 people on board had climbed at a speed that was higher than normal and then stalled, Indonesia's transport minister said on Tuesday (Jan 20).... "In the final minutes, the plane climbed at a speed which was beyond normal," said Transport Minister Ignasius Jonan, citing radar data. "The plane suddenly went up at a speed above the normal limit that it was able to climb to. Then it stalled," he told reporters... http://www.channelnewsasia.com/news/asiapacific/qz8501-plane-likely/1603572.html

13 January 2015: AirAsia Indonesia's 10-year struggle, Jokowi pledges aviation total reform


Crash upsets AirAsia’s Indonesia ambitions by Ben Bland in Jakarta and Jeremy Grant in Singapore  Last updated: January 12, 2015 5:08 pm; AirAsia founder and chief executive Tony Fernandes has struggled to make headway in Indonesia — one of the world’s fastest-growing aviation markets — because of tough competition and economic turbulence.... Now the ebullient Malaysian tycoon’s Indonesian business is in the headlines for a different reason, after the crash of flight QZ8501 with the loss of all 162 passengers and crew on board.... While recovery efforts continue, AirAsia’s accident-free reputation has taken an immediate hit. The group’s Malaysia-listed shares are down 13 per cent since the incident.... But carriers including AirAsia, founded with one second-hand aircraft in 2001, have been struggling to make money in Indonesia over the past year because of a sharp fall in the rupiah against the US dollar — around 70 per cent of costs including fuel and aircraft are dollar-denominated — and a slowdown in economic growth.... Cutting unprofitable routes and implementing fare increases helped Indonesia AirAsia eke out a small profit in the quarter ended September 30, but it is still lossmaking on a cumulative basis since it was launched a decade ago.
“Lion Air’s Rusdi is a very canny businessman and Tony will have his work cut out for him in Indonesia,” says Shukor Yusof, an aviation analyst at Endau Analytics in Malaysia.... Mr Beer of Citi says Mr Fernandes has built a clever business model with which it can circumvent foreign ownership restrictions in Indonesia and other Asian markets by taking minority stakes in the local operating companies but leasing aircraft to them from the parent group.... http://www.ft.com/intl/cms/s/0/ceaee908-9718-11e4-9636-00144feabdc0.html#axzz3Og9TsjPb

Indonesia’s Joko Widodo pledges to accelerate reforms 5:08AM by Ben Bland in Jakarta; Indonesian president Joko Widodo has vowed to accelerate economic reforms after surpassing investor expectations in his first three months by abolishing $18bn of wasteful fuel subsidies and neutralising political opposition in the fractious parliament.... When asked whether he could sustain the pace of change, Mr Widodo traced an exponential growth curve with his index finger, saying: “it will be like that”.... The president — who is universally known by his nickname Jokowi — said he would use the fuel subsidy savings to pump billions of dollars into infrastructure investment and push for “total reform” of the aviation sector following the shortcomings highlighted by the AirAsia crash.... But the 53-year-old has moved quietly to stifle his critics by appealing to key opposition politicians and the public. Several opposition parties, including the largest, Golkar, have become mired in internal disputes after senior leaders switched allegiance to Mr Widodo.... Mr Widodo will channel the Rp230tn ($18bn) of savings into infrastructure and social protection, reversing years of under-investment that have hobbled economic growth and left Indonesia with the highest rate of wealth inequality in Asia after China.... The depth of the problems afflicting the civil service has been underlined by the crash of AirAsia Flight QZ8501 en route from Surabaya to Singapore, which revealed worrying flaws in aviation regulation.... Facing his first major crisis as president, Mr Widodo said the government must use the crash as an opportunity “to totally reform our air transportation”, from the central government to the state-owned airport operator and air traffic control service.... http://www.ft.com/intl/cms/s/0/ae2fd588-9a48-11e4-9602-00144feabdc0.html#axzz3Og9TsjPb


11 January 2015: 61 routes suspended from five airlines, 11 officials suspended


Five airlines sanctioned for flight-permit violations: Minister The Jakarta Post, Jakarta | Business | Fri, January 09 2015, 6:39 PM After carrying out a thorough audit of flight permits for all domestic carriers following the AirAsia flight QZ8501 incident, the Transportation Ministry imposed sanctions on five domestic airlines on Friday. Minister Ignasius Jonan said that the companies were national flag carrier Garuda Indonesia, Lion Air, Wings Air, Trans Nusa and Susi Air. In total, the government suspended flight permits for 61 routes from the five airlines. Lion Air, the largest carrier in the country with a market share that reached 42 percent in 2013, committed the most violations, with the government suspending 35 of its routes. Garuda, meanwhile, committed permit violations on four routes. Jonan, however, refused to disclose the individual routes violated by the carriers. - See more at: http://www.thejakartapost.com/news/2015/01/09/five-airlines-sanctioned-flight-permit-violations-minister.html#sthash.yomDJsOz.dpuf

11 officials suspended in flight-permit violation case Khoirul Amin, The Jakarta Post, Jakarta | Headlines | Sat, January 10 2015, 9:48 AM . The Transportation Ministry announced on Friday the suspension or transfer of at least 11 aviation officials at the ministry for their alleged involvement in allowing several airlines to fly without proper permits.Transportation Minister Ignasius Jonan said the disciplinary measure were required to prevent similar reckless actions from occurring in the future. “This is also part of our effort to improve and supervise all officials at our ministry,” he said in a press conference. The suspended officials, who are all from the ministry’s directorate general of air transportation, comprise three officials of echelon II level and seven officials of echelon III level, while one principal operations inspector (POI) has been transferred. - See more at: http://www.thejakartapost.com/news/2015/01/10/11-officials-suspended-flight-permit-violation-case.html#sthash.witKxVAB.dpuf

9 January 2015: Jokowi orders compensation from Air Asia, KPK steps in and focus is on violated procedures that lead to air disaster, a lawmaker says minister equally responsible, Indonesia aviation needs reform


Jokowi orders AirAsia to pay compensation by Ina Parlina and Hans Nicholas Jong, The Jakarta Post, Jakarta | Headlines | Fri, January 09 2015, 10:02 AM; President Joko “Jokowi” Widodo was concerned with the slow compensation payments to next of kin of passengers on board the AirAsia flight QZ8501, Transportation Minister Ignasius Jonan says.Jonan issued the statement after a closed-door meeting with Jokowi on Thursday at the Presidential Office.“The President said that insurance should be paid. I told [him] that there is indeed a regulation covering the issue; Transportation Ministry Regulation No. 77/2011 stipulates that the amount is Rp 1.25 billion [US$98,386] per passenger,” Jonan said. Jonan said that AirAsia must pay the victims’ next of kin regardless of the legal status of the fight. “It has nothing to do with whether the airline is covered by insurance; Rp 1.25 billion per passenger should be paid by the airline.”Local media had earlier reported that AirAsia had only distributed forms to be filled in by QZ8501 passengers’ next of kin for the initial compensation of Rp 300 million per victim..... http://www.thejakartapost.com/news/2015/01/09/jokowi-orders-airasia-pay-compensation.html#sthash.cJVB5FT8.dpuf

KPK steps into AirAsia flight case Haeril Halim and Nadya Natahadibrata, The Jakarta Post, Jakarta | Headlines | Wed, January 07 2015, 9:14 AM; Following the revelation that the crashed AirAsia flight QZ8501 might have obtained a flying permit outside of proper procedures, the country’s antigraft body is offering help to probe into the possibility of bribery having been practiced in the case.The Corruption Eradication Commission (KPK) is ready to help the Transportation Ministry to curb alleged irregularities that might lead to corruption or bribery practices plaguing flying permits in the country’s aviation system, the agency’s deputy chairman Bambang Widjojanto said on Tuesday.He said the agency would establish communications with the ministry to find out whether AirAsia had eased its way to obtain flying permits by bribing state officials..... http://www.thejakartapost.com/news/2015/01/07/kpk-steps-airasia-flight-case.html#sthash.5sdCHBHH.dpuf

Focus turns to AirAsia’s alleged missteps Hans Nicholas Jong and Indra Harsaputra, The Jakarta Post, Jakarta | Headlines | Sun, January 04 2015, 10:46 AM; As more than 30 bodies from AirAsia Flight QZ8501 were recovered from the Karimata Strait this weekend, leaked official documents have given rise to allegations that AirAsia Indonesia violated procedures that lead to the disaster..... http://www.thejakartapost.com/news/2015/01/04/focus-turns-airasia-s-alleged-missteps.html#sthash.Mcrqxvya.dpuf

Transportation minister ‘responsible for alleged illegal flight route’ The Jakarta Post, Jakarta | National | Tue, January 06 2015, 7:47 PM; Transportation Minister Ignasius Jonan should be held responsible an alleged illegal flight schedule involving budget airline AirAsia, according to Bambang Haryo, a member of House of Representatives Commission VI overseeing consumer protection.“The transportation minister should be held equally responsible for the case. A flight-worthiness status, especially for international flights, is based on permission and approval given directly by the transportation minister,” said Bambang as quoted by Antara news agency in Jakarta on Tuesday.He insisted the airline company should not be blamed for the case relating to AirAsia flight QZ8501, which crashed into the waters of the Karimata Strait while en route from Surabaya to Singapore on Dec.28.... http://www.thejakartapost.com/news/2015/01/06/transportation-minister-responsible-alleged-illegal-flight-route.html#sthash.eXcRLgeo.dpuf

Indonesia's Aviation Safety Rules Need Reforming, Opinion By Joshua Kurlantzick   1/8/15 at 4:30 PM Newsweek; The crash of AirAsia Flight 8501, though tragic, was not an enormous surprise to anyone who follows aviation in Indonesia, or who has flown repeatedly in Indonesia. This is not to say that AirAsia has a poor safety record; the airline had never had a fatal accident prior to this one, and AirAsia management has responded admirably to the crash. Senior management, including AirAsia CEO Tony Fernandes, have reached out to families of the survivors, trying to keep them updated about information on the search and rescue operations and personally consoling relatives of people who were on Flight 8501.But anyone who knows aviation in Indonesia knows that the country has a horrific record for airplane accidents and that Indonesia has weaker safety protocols regarding aviation than other middle-income countries..... http://www.newsweek.com/indonesias-aviation-safety-rules-need-reforming-297976


8 January 2014: Indonesia questions on ministry corruption, flouting existing regulations, and rationale of raising fares in wake of Air Asia QZ8501 crash disaster. KPK will investigate corruption in the aviation sector. Minister furious on weather briefing.


 Editorial: Minister’s Punitive Stance Doesn’t Fly By Jakarta Globe on 12:54 am Jan 08, 2015
 Category Editorial, Front Page, Opinion Tags: air transportation, airfare, aviation, Ignasius Jonan, Indonesia AirAsia flight QZ8501; Transportation Minister Ignasius Jonan could have started a revolution within his own ministry — in the directorates general of land, sea and air transportation — by, for instance, punishing corrupt and underperforming officials, establishing a clear system of rewards and disincentives, or being more strict about implementing existing regulations.... The crash of an Indonesia AirAsia jet on Dec. 28 should have been an indication of just what a rotten ministry he inherited — in particular the office dealing with air transportation. Jonan should have overhauled the system, technology and manpower, including those responsible for air traffic control, and for granting flight permits.... Instead, he has chosen to shift the blame form the crash of the plane, which was not permitted to fly on a Sunday, to private airlines. He has also punished the public by implementing a new regulation that caps minimum ticket prices. The cheapest ticket now available may not be less than 40 percent of the price of the most expensive one for any given route. His rationale? Ticket prices are so low that poor profitability impairs airlines’ ability to comply with aviation safety standards.... This is as nonsensical as anything can get, and against the law of free market competition... http://thejakartaglobe.beritasatu.com/opinion/editorial-ministers-punitive-stance-doesnt-fly/

AirAsia Banned From Flying Key Routes: Report, Jan. 7 (Bloomberg) -- Bloomberg's Alia Karenina has the latest developments in the search for AirAsia Flight QZ8501. She speaks on "On The Move Asia." (Source: Bloomberg) http://www.bloomberg.com/video/airasia-banned-from-flying-key-routes-report-DMl8NSWcTy61rLGA6_zP9A.html; note: There will be an investigation by KPK, the Indonesia anti-corruption agency. The official who approved the Air Asia flight has been suspended. KPK will check if other airlines were flying on non-authorized schedules. This will be the first KPK anti-corruption crackdown on the Indonesia aviation sector. Air Asia Surabaya-Singapore and Medan-Palembang routes have been suspended. Air Asia says it has a 7-days flying permit and that there is merely an administrative error.

Air Asia insurance compensation will look into irregularities. Initial Victim Compensation Is Goodwill: Ribbands, Jan. 6 (Bloomberg) -- Victorian Branch Aviation Law Association of Australia and New Zealand Chairman and Aviation Lawyer John Ribbands discusses the legal aspects of the crash of AirAsia Flight QZ8501 with Bloomberg’s Rishaad Salamat on “On The Move.” (Source: Bloomberg) http://www.bloomberg.com/video/initial-victim-compensation-is-goodwill-ribbands-TsEtkym1QdyUW6j_EMQEjg.html.

 Minister furious AirAsia 'flouted procedure' 5:12PM Jan 2, 2015 by Malaysiakini; According to Indonesia's detik.com, the minister expressed his anger after visiting the airline's headquarters near Jakarta to observe its pre-flight procedures.... Quoting the minister’s aide, the news portal said Jonan warned that stern action would be taken against the breaches.... "Jonan is angry at AirAsia. Furious… Prior to departure, the pilot is supposed to get a briefing directly from the flight operations officer (FOO), especially on the weather.... "However all this while, AirAsia simply relied on the Agency for Meteorology, Climatology, and Geophysics' (BMKG) website," said his aide Hadi M Djuraid.....
 Meanwhile, Indonesian portal Tempo reported what supposedly transpired during the minister's surprise visit, saying that an unnamed AirAsia Indonesia director had defended its reliance on BMKG’s website.... "This is how it is done internationally. To physically take weather information from BMKG is the 'traditional' way," the director reportedly said to Jonan.Jonan then rebutted by asking why AirAsia is still taking hard copies of BMKG’s weather reports, even after QZ8501 had gone missing, but the reply came, “Yes, because that’s tradition.”... This reportedly infuriated Jonan, who said, “When there are rules, you should follow it. Don’t fight, or I’ll strip you of your licence.”... The director reportedly promised to comply with the regulations.... http://www.malaysiakini.com/news/285175