Indonesian airline PT Mandala Airlines has been given the go-ahead to fly again after being grounded for an entire year due to debt issues.

Announced this week by shareholder Tiger Airways, the carrier said Mandala should be in the air again from April this year and will aim to fly within Indonesia and international destinations less than five hours away, Ninemsn reported.

"Tiger Airways Holdings Limited is pleased to announce that PT Mandala Airlines' Air Operator's Certificate has been reactivated by the Indonesian Director General of Air Communications," Tiger said.

"Information regarding the number of aircraft, the initial routes and destinations for Mandala will be announced soon.”

As it prepares to takeoff again, the airline will adopt Tiger Airways’ low-cost model and will fly mostly Airbus A320s.

The carrier was grounded in January last year due to enormous debt and has since received investment from 51.3 percent shareholder Saratoga Group and 33 percent shareholder Tiger Airways.