Financial Times FT.com

US faith gives Indonesian airlines a lift

By John Aglionby in Jakarta

Published: April 13 2009 18:03 | Last updated: April 13 2009 18:03

When the US Export-Import Bank recently approved $1.425bn in financing for two Indonesian airlines to buy new Boeing aircraft, analysts might have been forgiven for thinking this was a crude attempt by Washington to protect domestic jobs and curry favour in Jakarta.

After all, Indonesian airlines are banned by the European Union and all but prohibited from the US, and incidents occur at a rate of several a month. Ministers admit that there are too few aircraft inspectors and those lack training and are poorly paid.

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