AIRASIA: FLYING CABOTAGE UNDER CLOAK IN INDONESIA AND ASEAN

Abstract

Cabotage has become a sensitive issue from time to time since it is very related to the sovereignty of a state. Foreign direct investment in aviation business has lead into a new chapter of cabotage. AirAsia has seen the gap within the Indonesian Law as a way to perform a cloaked cabotage under Indonesia AirAsia. A new perspective of a cloaked cabotage under the 8th and 9th Freedoms of the Air held by AirAsia and Indonesia AirAsia with their successful business and marketing formula will be described.