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Flight 8501 was a scheduled flight from Surabaya, Java, Indonesia to Singapore on Sunday, 28 December 2014. It was scheduled to depart Juanda International Airport at 05:20 Western Indonesian Time (WIB, UTC+7) and arrive at Singapore Changi Airport at 08:30 Singapore Standard Time (SST, UTC+8). Flight 8501 took off at 05:35 WIB and reached its cruising altitude at flight level (FL) 320 (32000 ft) fourteen minutes later and was on a 329-degree heading. After departure, Flight 8501 was in contact with the Jakarta Area Control Centre (callsign: "Jakarta Centre"), which provides air traffic control (ATC) service over the western Java Sea, and flying along air route M635, off the southwest coast of Borneo.

The flight was normal until 06:00 when an electronic centralised aircraft monitor (ECAM) memo was displayed, along with a master caution light, to indicate a fault with the rudder limiter system. Captain Iriyanto read the actions for fixing this failure (which involved rebooting two of the aircraft's Flight Augmentation Computers (FAC)), saying, "FAC 1 off and on. FAC 2 off and on." The same fault recurred at 06:09, and the captain fixed it in the same way.

At 06:11 the pilots turned 15 degrees to the left to avoid the weather, and contacted Jakarta Air Traffic Control to request a climb to FL 380 (38000 ft) for the same reason. The controller could not give immediate permission for this due to other aircraft in the vicinity, and instructed them to wait.

While they were waiting for permission to climb, the rudder limiter problem occurred for a third time, and for the third time the captain reset the FAC computers. When the memo displayed for the fourth time, captain Iriyanto decided to reset to the FAC circuit breakers (CB). He had previously seen this action being performed by a ground engineer, and believed that it was okay to do so in flight. But this action not only reset the FAC computers, it also disconnected the auto-pilot and auto throttle, and the flight control law changed from Normal to Alternate. It also caused the aircraft to roll to the left, and by the time first officer Plesel reacted to this it was banked at 54 degrees.

Plesel, possibly spatially disoriented due to the roll sensation, over-corrected twice: first by making a sharp right bank input and then a sharp left bank input. Plesel then made a nose-up input on his side-stick, causing the aircraft to enter a steep climb at a 24-degree nose-up pitch. In just 54 seconds, the aircraft climbed from FL 320 to 38500 ft, exceeding a climb rate of 10,000 feet per minute. It then entered a stall, descending at a rate of up to 20000 ft per minute. The aircraft also began a turn to the left, forming at least one complete circle before disappearing from radar at 06:18:44. At 06:20:35 the flight data recorder stopped recording. The CVR stopped recording one second later, at 06:20:36. The aircraft crashed into the Java Sea and was destroyed. All 162 people on board were killed.

Its last recorded position was over the Java Sea, Karimata Strait between the islands of Belitung and Kalimantan (-3.3708°N, 109.6911°W). The aircraft crashed in the Java Sea, Karimata Strait between the islands of Belitung and Borneo (-3.623°N, 109.712°W). The cockpit voice recorder captured multiple warnings, including a stall warning, sounding in the cockpit during the final minutes of the flight. No distress signal was sent from the aircraft. Search and rescue (SAR) operations were activated by the Indonesia National Search and Rescue Agency (Basarnas) from the Pangkal Pinang office.