Jakarta. Irish carrier BBN Airlines has ceased passenger flight operations in Indonesia, shifting its business model to aircraft leasing.

A subsidiary of Avia Solutions Group, BBN Airlines launched operations in Indonesia in September 2024 after securing an Air Operator Certificate (AOC) from the Directorate General of Civil Aviation (DGCA). The airline initially operated domestic routes connecting Jakarta with Surabaya, Balikpapan, and Denpasar under state-owned airport operator InJourney Airports.

The company has now withdrawn from scheduled passenger flights and is leasing its fleet to other carriers, with Sriwijaya Air as its first customer. “It seems they were either unprepared or decided to shift from flight operations to aircraft leasing,” Transport Minister Dudy Purwagandhi said Monday.

BBN’s strategic pivot comes as the global aircraft supply chain remains constrained, with Airbus SE and Boeing Co. still recovering from post-pandemic production delays. “Limited aircraft availability makes it difficult to procure new planes, which creates an opportunity for leasing businesses,” Dudy added.

BBN Airlines Indonesia Chairman Martynas Grigas said the decision aligns with rising demand for flexible fleet solutions in the region. “With aircraft availability still tight worldwide, we see strong potential in providing leasing solutions to airlines that need immediate capacity,” Grigas said in a statement.

He added that despite withdrawing from scheduled flights, the company remains committed to the Indonesian market. “Our priority is to support the aviation sector by offering reliable leasing solutions that help airlines scale their operations efficiently,” he said.

Before the shift, BBN Airlines Indonesia had been preparing to expand its fleet to meet growing demand for domestic and international travel. The company initially aimed to cater to Indonesia’s high seasonal travel demand, particularly during major holidays like Eid al-Fitr.

“In addition to the considerable demand for domestic flights, there is strong interest from India and China,” Grigas said. “Our operational area covers the Asia-Pacific region, allowing us to serve not only Indonesia but also neighboring markets.”

BBN Airlines had deployed three Boeing 737-800s for passenger charter services and three Boeing 737-400s for cargo operations. The company had previously announced plans to operate a total of 40 aircraft by 2027.