Australia and Indonesia sign new air services agreement

Australia and Indonesia have signed an updated bilateral air services arrangement, marking the first update to their agreement in 15 years. The new memorandum of understanding (MoU) allows airlines from both nations to operate an additional 5,000 seats per week.

The agreement aims to increase capacity on high-demand routes, such as those to Bali and Jakarta, which may eventually ease fare pressure during peak travel periods. It also expands access to several Indonesian tourism destinations beyond traditional gateways, including Lake Toba, Borobudur, Mandalika, Komodo, and Likupang.

Additionally, the deal permits airlines to operate services to and from Australia’s new Western Sydney International Airport. While the agreement provides the legal framework for increased capacity, the actual implementation of new flights will depend on airlines securing necessary aircraft, airport slots, and passenger demand.