Merpati (MZ, Jakarta Soekarno-Hatta International (CGK)) faces an uncertain future over reports that its sole shareholder, the Indonesian government, is considering closing down the debt-ridden airline. Indonesia's State-Owned Enterprises Minister, Dahlan Iskan, said he would consider numerous proposals made regarding the shutting down of the airline, which, despite a change in leadership effected last year, has yet to show any signs of a turn around. Cost cutting measures thus far have seen Merpati axe roughly 12 routes from its previous 124-strong network with figures showing that 112 of them were unprofitable owing to load factors of less than 60%. Merpati's debts currently stand at US$32.7million, owed mostly to state-owned institutions such as oil and gas firm PT Pertamina for fuel purchases, Mandiri Bank, airport operator Angkasa Pura II, state asset manager PT PPA and PT Jasindo, an insurance firm. Indonesian aviation sources speculate as to how even a propped-up Merpati would fare in the long run against the likes of Lion Airlines (JT, Jakarta Soekarno-Hatta International (CGK)), Citilink (QG, Surabaya Juanda (SUB)) and a resurgent Mandala Airlines (RI, Jakarta Soekarno-Hatta International (CGK)) all of whom have set their sights on dominating, not just the domestic Indonesian market, but the regional South East Asian one as well.

Mandala Airlines (RI, Jakarta Soekarno-Hatta International (CGK)) is planning to buy 18 Airbus A320-200s worth USD$1.6 billion by 2014, in an effort to meet the growing demand for cheap and easy accessible air travel in South-east Asia's largest economy, Indonesia. According to Sandiaga Uno, CEO of investment firm Saratoga Investama Sedaya, which holds a 51% stake in the Indonesian carrier, Mandala's operational target is to capture a 20% market share by flying two million passengers per year aboard a fleet of 25 aircraft. According to Airwise, "Mandala will use an existing option held by minority shareholder, Tiger Airways (TR, Singapore Changi International (SIN)), to buy the Airbus jets." Mandala currently operates seven Airbus A320s on domestic routes and partners with Tiger Airways on international flights.

Express Air (XN, Makassar Hasanuddin (UPG)) has launched daily service from Batam Hang Nadim (BTH) to Pontianak Supadio (PNK) on February 7 taking over one of the only routes bankrupt Batavia Air (Y6, Jakarta Soekarno-Hatta International (CGK)) had not served in competition with other Indonesian carriers already. Sriwijaya Air (SJ, Jakarta Soekarno-Hatta International (CGK)) has announced plans to take over the route from Yogyakarta Adi Sucipto (JOG) to Pontianak. Low-cost carriers Citilink (QG, Surabaya Juanda (SUB)) and Mandala Airlines (RI, Jakarta Soekarno-Hatta International (CGK)) are both planning to enter new markets where capacity was lost due to the market exit of Batavia but that are already served by other carriers.

Mandala Airlines (RI, Jakarta Soekarno-Hatta International (CGK)) will resume operations on April 5 initially operating under its old name before being rebranded to Tiger Airways Indonesia (RI, Jakarta Soekarno-Hatta International (CGK)) later. It will launch twice daily A320-200 service from Jakarta Soekarno-Hatta International (CGK) to Medan Polonia (MES) first and then add Kuala Lumpur International (KUL) as its second destination in early May.

Mandala Airlines (RI, Jakarta Soekarno-Hatta International (CGK)) is a step closer to resuming domestic operations in Indonesia in April after having taken delivery of a brand new A320-200 on lease from new minority shareholder Tiger Airways (TR, Singapore Changi International (SIN)) which has taken a 33% stake in the grounded carrier that will resume operations as Tiger Airways Indonesia (RI, Jakarta Soekarno-Hatta International (CGK)). Indonesian private equity group Saratoga owns 51% in the carrier while its previous owners as well as some creditors own the remaining shares. The carrier is expected to operate up to 10 A320-200s by the end of the year. Mandala had been forced to suspend operations in mid-January 2011 when it had run out of funds.