Indonesia domestic airline market: rapid growth, rivalry intensifies

Indonesia has one of the world's largest and most dynamic domestic markets. Domestic traffic in Indonesia has more than tripled over the past 12 years, from less than 30 million in 2005 to almost 97 million in 2017.

The composition of the market has changed considerably. In 2005, the Indonesian airline sector was very fragmented with no single airline or group accounting for more than a 25% share.

The market today is dominated by the Garuda and Lion groups. Lion is the market leader and its share of Indonesia's scheduled domestic market exceeded 50% for the first time in 2017.

Garuda's share slipped last decade as Lion expanded, but Garuda was able to regain market share during the first half of this decade due partially to consolidation as several smaller airlines ceased operations. Garuda captured a 33% share of the Indonesian domestic market in 2017, a fall from 38% in 2015 but still significantly up from 19% in 2010.