Author(s): Feri Wirsamulia
Since the issuance of the Indonesia Aviation Law No. 1 of 2009, the provisions regarding aircraft mortgage as debt collateral were actually removed from the previous Aviation Law that is the Act No. 15 of 1992. Article 12 sub article no. (1) of The Aviation Act No. 15 of 1992, regulated that aircraft could be a subject to mortgages, however, this provision was abolished by the new Aviation Act No. 1 of 2009. This is due to the Article 465 of the Act which explicitly states that all provisions in the Act No. 15 of 1992 no longer applies, meanwhile, the Aviation Act No. 1 of 2009 in no way regulates aircraft mortgages. In practice, this legal vacuum has become a problem for airline companies to put their registered aircrafts as collateral in form of mortgage. Particularly in the Covid 19 pandemic, which until the beginning of 2021 has not ended, it has caused severe damages to the financial balances of many airlines due to the absence of passengers and restrictions to fly by the Government. Actually, aircraft can be used as collateral or security interest for working capital loan. This research is a normative study which will discuss and analyze the possible types of collateral over aircraft that are most likely to be carried out by airlines in Indonesia, in the midst of the in-availability of aircraft mortgages regulation.