Aircraft Accident SAR Fund, Who Is Responsible?

Ilustrasi (Raga Granada / YOU)

Welcome back to VOI's signature Series. Not long ago, tragedy struck again on Indonesian flights. The Sriwijaya Air plane crashed in bad luck. SAR operations were then carried out. Clear action must be. But there are other perspectives covering disasters like this, about SAR operation funds, how regulations govern the responsibility for SAR operation funds. The inaugural article of the "Aircraft Search and Rescue Snare" series will discuss about who exactly is responsible for the SAR operation of an airplane crash? Can SAR operations put an airline out of business?

In the past decade, three airplane accidents have occurred in Indonesia. A search and evacuation operation (SAR) was launched to search for black boxes and trace possible survivors. It costs a fortune for that. The rules state that the state is allowed to cover these costs. However, after that the airline had to change. The problem is, until now no airline has returned the state's money. If left unchecked, this could be a bad precedent that will make the domestic aviation world even more despised.

Three tragedies in the world of aviation in that decade, among others: the Air Asia QZ-8501 accident in 2014, Lion Air JT-610 in 2018, and Sriwijaya Air SJ-182 in early 2021. As an archipelagic country with 77 percent of its territory over the sea, so when a plane crash occurs, it is likely that the SAR team will explore the ocean. SAR operation costs in Indonesia are almost certainly not cheap.

At least ships and helicopters need liters of fuel to get to the search point. Not to mention other costs that cannot be cut, such as eating and drinking for field officers. We can reflect on the search for the Malaysia Airlines Mh-370 plane which was lost in the Indian Ocean and has not been found until now.

As is known, the governments of Australia and Malaysia spent more than 100 million US dollars (US) or around Rp1.3 trillion for SAR operations. Then when searching for Air Asia QZ8501 in 2014, the then Minister of Transportation, Ignasius Jonan, said that the search and evacuation costs reached Rp1 trillion.

"The cost of saving AirAsia was Rp1 trillion," said Jonan on April 20, 2015 as quoted by Kompas.

SAR Operation (Angga / VOI)

He said that figure was for the overall costs of all agencies involved in the search, starting from the Ministry of Transportation (Kemenhub), the National SAR Agency (Basarnas), the Indonesian National Army (TNI), the National Transportation Safety Committee (KNKT) and other agencies. However, Jonan did not specify the amount of the allocation.

The head of BASARNAS at that time, Bambang Soelistyo, dismissed the notion that the search for the AirAsia QZ8501 plane victim cost a lot of money. Bambang said the funds spent in the 16 days of searching were only Rp.570 million.

Another accident, namely the search operation for Lion Air JT 610, both Basarnas and the government did not disclose how much they paid. However, in December 2018, Lion Air stated that it had budgeted a fee of IDR 38 billion, resuming the search for Lion Air JT 610, which had been delayed.

Then who is actually responsible for bearing the costs?

Rules about SAR operations for aircraft accidents

In the international agreement The Chicago Convention of 1944 Annex 13 (ICAO) states must prepare SAR facilities, such as ships, aircraft, experts, equipment, or all kinds related to it. In Indonesia, Law No.1 of 2009 on Aviation (Aviation Law) places Basarnas as the sole party implementing SAR operations related to aviation.

The regulation also regulates the maximum limit for SAR operations, which costs the state to cover seven days. But in reality, the search time can be more than a week. And because it is urgent, like it or not the state must first cover the SAR operation funds. No problem, of course. We know it's a matter of life.

However, aviation insurance observer Sofian Pulungan said the money that was covered by the state budget should actually be reimbursed by the airline. Because according to Sofian, the country's job is only to operate SAR, not insure the aircraft.

The argument is not without foundation. Because in Article 62 of the Aviation Law, every airline must have insurance. "Nobody flies without insurance. Every insurance includes elements of SAR. The amount must be sufficient," Sofian said when contacted by VOI.

In this article, it is explained that compulsory insurance must include five elements. Among other things: aircraft operated, aircraft personnel, liability for losses of second parties (passengers) and third parties (cargo) as well as aircraft incident and accident investigation activities.

Unfortunately, Sofian admits that the Aviation Law has not completely regulated the fifth point of insurance, namely the investigation of aircraft incidents and accidents. "There should be an explanation of this law in the form of a regulation of the minister of transportation."

However, in fact, the details in point five of Article 62 of the Aviation Law are contained in clause AVN 76 - the legal basis for conducting SAR operations. "It explains what is covered in this SAR-related insurance," said Sofian.

"Starting from the search for the aircraft, diving, lifting, until the success of finding the plane's frame, the remains, to the cost of identification, it is included. Many do not know these things because everything is explained in English terms," explained Sofian.

Sofian said there was a mistake in this insurance issue. Because when the state carried out SAR operations, the airlines were even reluctant to know about costs. "Whereas there is insurance also to cover costs that have been issued from the state budget."

Infographics (Raga Granada / VOI)

Make the airlines go bankrupt?

The state party, which in this case is responsible for SAR operations, Basarnas has carried out the obligation to conduct search and rescue in aircraft accidents. Now, the state also has the right to claim reimbursement of funds.

After the state carries out its duties by deploying search and rescue operations, according to aviation insurance expert Sofian Pulungan, the state has the right to claim reimbursement. According to him, this should not be a difficult thing, because the airline should have provided spare money to pay claims.

"After all, SAR is already insured. And I know how the insurance mechanism is and there are no problems. Then there is someone who frightens the airline to go bankrupt, yes or no," said Sofian.

Illustration (Angga / VOI)

Another problem that hinders the process of reimbursing APBN funds, according to Sofian, is due to legal defense. The airline's legal team, said Sofian, relied on loopholes in the absence of implementing regulations from the Aviation Law.

Even though it cannot be an excuse. Because even without implementing regulations, airlines are required to have insurance as stipulated in the Aviation Law.

Collect debt

Sofian is one of those who is working on a case of returning the state money used for the SAR operation of aircraft accidents from the three airlines, namely: Air Asia QZ 8501, Lion Air JT 610, and most recently Sriwijaya Air SJ 182. He has been doing this for five years. .

"I really want to take this case to court. We'll see. It's not that I have business or get paid or anything, the problem is a precedent. I am afraid that in the future if an accident like Malaysia Airlines occurs, our country's finances will be battered," he said.

Even though these polemics are often voiced and raised, the state still doesn't budge. In fact, the trillions of money can be diverted for state needs, considering that the money is part of the state budget.

The state has fulfilled its obligations by becoming a SAR operator, now the state must also get its full rights. What should be underlined is that the state does not provide insurance for airlines. So, it is fine for the state to collect the APBN owed.

"These airlines in Indonesia are looking for profit. They sell tickets, right? That's looking for profit. Business, yes, in this business, you have to close the insurance. There is already insurance and then the payment is by the state. Since when did the state become an insurance company," said Sofian.

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