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IN INDONESIA there are dozens of airlines operating, some of which have also stopped operating or went bankrupt. Some of these names you may have heard and climbed while still operating.
The following is a list of airlines in Indonesia that have gone bankrupt, quoted from infodephub.com:
1. Mandala Airlines
Mandala Tigerair (formerly Mandala Airlines) is an Indonesian low-cost airline headquartered in Jakarta. Currently, Tigerair Mandala has connecting airports at Soekarno-Hatta International Airport, Kuala Namu International Airport, Sultan Syarif Kasim II Airport and Juanda International Airport.
Tigerair Mandala is a 40-year-old national airline which was purchased by Indigo Partners and Cardig International in 2006. Mandala has ordered 30 new Airbus aircraft worth US$2.3 billion, Mandala is managed by a team of experienced international management. Mandala has also discontinued the use of all of its Boeing Aircraft and is collaborating with the Singapore Airlines Engineering Company for aircraft maintenance.
Due to debt problems, the airline stopped operating on January 12, 2011. The airline then requested a rescheduling of its debt payments to the Central Jakarta Commercial Court. Mandala’s debt at that time was IDR800 billion to 271 creditors, mainly to the lessors of its aircraft.
At the end of February 2011, the creditors agreed to restructure Mandala’s debt into shares. 70.58% of creditors agreed to restructuring the airline’s debt of IDR2.4 trillion. In April 2011, the team of curators stated that Mandala would resume operations in May 2011. The airline then confirmed that it would resume operations in June 2011. As part of its restructuring, the airline also underwent a change of share ownership.
The majority shareholder is PT Saratoga Investment Group at 51%, followed by Tiger Airways from Singapore at 33%, and the remaining 16% is owned by former shareholders and creditors.
For the second time, Mandala Tigerair will stop all operations. On July 1, 2014, Mandala Tigerair will carry out its last flight with flight number RI 545 to Hong Kong to Surabaya. This plan was carried out because of the economic problems experienced by the airline.
2. Merpati Airlines
Merpati Nusantara Airlines or hereinafter known as Merpati Nusantara is one of the domestic national airlines in Indonesia. Several years ago, he flew regional routes to Southeast Asia and Australia.
This airline is categorized as category 1 (very good performance) from the Ministry of Transportation. Merpati received a 2-star rating (less service quality) from Skytrax. In terms of flight safety, this airline has a relatively poor safety record compared to other Indonesian airlines.
In 2007, Merpati began implementing a partial fleet revitalization and modernization program, considering that it was still struggling with financial problems, especially its pioneer fleet, by ordering 14 Xian MA60 aircraft from Xian Aircraft China. Merpati also briefly rented 1 ATR 72, but later returned it because it was considered uneconomical (several sources state that ATR was only rented temporarily, waiting for additional MA60).
Merpati also announced that it will purchase 11 30-seat aircraft for domestic routes (type not confirmed), and is also likely to order PTDI’s N-219 aircraft sometime in 2011. On May 7, 2011, a Xian MA60 (PK-MZK) plane crashed in Kaimana waters, killing all 27 people on board (21 passengers and 6 crew).
This accident adds to the long list of accidents involving the Merpati pioneer fleet. Merpati’s last accident was on 2 August 2009, where a Twin Otter fell in the mountains in Papua, killing all 16 passengers (13 passengers and 3 crew). After the Kaimana accident, many people questioned Merpati’s decision to buy the Xian MA60 aircraft, as well as the alleged mark-ups and collusion that occurred during the purchase process.
Entering February 2014, Merpati temporarily suspended all flight operations until March 2014. Merpati stopped operating because it was unable to pay for insurance, fuel and salaries for its crew and employees. Merpati is now burdened with debt that reaches IDR7.3 trillion. Regarding the initial plan to operate in March, it was postponed again because the Restructuring and Revitalization (RR) Program was still not finished.
3. Riau Airlines
Riau Airlines is a regional airline based at Sultan Syarif Kasim II Airport, Pekanbaru. Established in 2002 with the aim of opening and advancing air transportation in Riau. The airline was founded on March 12, 2002 and started operations in December 2002.
It is the only Indonesian commercial airline headquartered outside Jakarta. Riau Airlines is also the only commercial airline owned by the local government. The shares of this airline company are majority owned by the regional government of Riau province and several other provinces such as Lampung, Bangka Belitung and Bengkulu.
Previously formed to connect cities in Riau province which has many pioneer airports, until now it has expanded its operational area to connect all major cities on the island of Sumatra, and also serves the routes of Java, Bali, and Mataram, NTB, Flores Island, NTT. Also expanded to operate international routes, namely to Malaysia. However, a financial crisis arose in the airline, which finally decided to stop operating in 2008.
The airline resumed operations in January 2011 with the Pekanbaru-Tanjung Pinang-Natuna flight route with Boeing 737-500 aircraft leased from PT. Aero Nusantara Indonesia. Riau Airlines currently operates 1 Boeing 737-500, and will receive 1 Boeing 737-300 with a leasing mechanism 2 Fokker 50 aircraft. Riau Airlines is withdrawn by AeroCentury, the lessee of this aircraft due to unpaid aircraft lease arrears.
Because the 2 planes are the rest of the existing fleet (because the remaining planes are returned or sold). Riau Airlines decided to stop operating.
4. Batavia Air
Batavia Air (official name: PT. Metro Batavia) is an airline in Indonesia. Batavia Air began operations on January 5, 2002, starting with one Fokker F28 and two Boeing 737-200s. After various incidents and accidents happened to airlines in Indonesia, the Indonesian government made a rating for these airlines.
From the results of the ranking announced on March 22, 2007, Batavia Air is ranked III, which means it only meets the minimum safety requirements and there are still some requirements that have not been implemented and have the potential to reduce the level of flight safety. As a result, Batavia Air received an administrative sanction which would be reviewed every 3 months.
If there is no improvement in performance, the Flight Operation Permit (Air Operator Certificate) can be frozen at any time. However, Batavia quickly improved itself and finally received a category 1 assessment from the Ministry of Transportation starting in 2009.
This airline is also one of the 4 Indonesian airlines that have been allowed to fly to the European Union since June 2010. On January 31, 2013, Batavia Air stopped operating because it was declared bankrupt by the Central Jakarta Commercial Court. The Central Jakarta Commercial Court in its decision letter No.77/palit/2012/PN.NIAGA.JKT.PST on January 30, 2013 bankrupted Batavia Air.
This has an impact on the cessation of flying operations since January 31, 2013 at 00.00. Bankruptcy due to an application submitted by the aircraft leasing company International Lease Finance Corporation (ILFC).
5. Adam Air
Adam Air (founded as PT Adam SkyConnection Airlines) is a private airline based in West Jakarta, Jakarta, Indonesia. The airline operates scheduled domestic flights to 20 cities and international services to Penang and Singapore. The main base of this airline is at Soekarno-Hatta International Airport, Jakarta.
Although sometimes referred to as a low-cost airline, it markets itself as an airline that falls somewhere between low-cost and traditional airlines, providing onboard food service and low fares, similar to those adapted by Singapore-based airline Valuair.
Prior to the Flight 574 crash, this airline was the fastest growing low-cost airline in Indonesia. After various incidents and accidents that happened to airlines in Indonesia, the Indonesian government made a rating for these airlines.
From the results of the ranking announced on March 22, 2007, Adam Air is ranked III, which means that it only meets the minimum safety requirements and there are still several requirements that have not been implemented and have the potential to reduce the level of flight safety. As a result, Adam Air received administrative sanctions which were reviewed every 3 months.
After no performance improvement within 3 months, Adam Air’s Air Operator Certificate was then frozen. Adam Air’s operational activities have been suspended since March 17, 2008 and will only be resumed if there are new investors who are willing to bail out the 50% of the shares withdrawn by Bhakti Investama.
On March 18, 2008, the Adam Air flight permit or Operation Specification was revoked by the Ministry of Transportation through a letter numbered AU/1724/DSKU/0862/2008. The contents stated that Adam Air was no longer allowed to fly his aircraft effective as of 00.00 on 19 March 2008. Meanwhile, his AOC (Aircraft Operator Certificate) was also revoked on 19 June 2008, ending all Adam Air flight operations.
6. Bouraq Indonesia Airlines
Bouraq Indonesia Airlines or better known as Bouraq Airlines or simply Bouraq is an airline that has been available for a while in Indonesia. Bouraq in Islam is the name of a winged horse. After the tens of 80s, Bouraq continued to advance.
At that time Bouraq had 4 (four) Vickers Viscount (VC-843) aircraft available, 3 (three) CASA NC-212 and 16 (sixteen) BAE-748 series 2A and 2B. Bali Air itself operates 2 (two) Britten Norman (BN) Islanders and 4 (four) Britten Norman (BN) Trislanders for short-haul or pioneer flights.
In 1997 Bouraq even provided 10 (ten) Hawker Siddley HS 748s and 8 (eight) Boeing 737-200s. The sky of the archipelago is also green with the increasing number of Bouraq fleets that fly across the various destinations of the archipelago. Bouraq also fulfills the demand for charter flights and others.
Unfortunately, the crisis storm hit Indonesia. Bouraq finally took various strategic steps to be able to survive, such as shrinking the fleet, closing several flight path operations that were considered less profitable. The economic crisis does not mean that all of Bouraq’s operations have come to a standstill.
All efforts continue to be carried out by the Bouraq management who are now under the direction of Danny Sumendap, son of J.A. Sumendap so that Bouraq can survive and be more advanced in the future. Various strategic, profitable, effective and efficient steps continue to be carried out. One of them is partnerships with various existing airlines such as Silk Air and Royal Brunei Airlines (joint venture agreements) which have proven to be able to make Bouraq still able to fly.
At the end of 2004, Bouraq Airlines had stopped operating because it was unable to compete with the new airline operators that appeared continuously at the beginning of the reformation (Lion Air, Batavia Air, Sriwijaya Air). To date, there has been no clear sign of a settlement with its employees, both regarding severance pay and the remaining unpaid salaries. Currently, we are still waiting for a court decision regarding the efforts of an employee and a creditor to go bankrupt Bouraq Airlines.
7. Sempati Airlines
Sempati Air is an airline in Indonesia. This airline has been operating since 5 June 1998. Its IATA code, SG, is now used by the airline from India “SpiceJet”. Established in December 1968 under the name PT Sempati Air Transport, Sempati started its maiden flight in March 1969 using a DC-3 aircraft.
Sempati initially only offered transportation services for oil company employees, but after the additional DC-3 and Fokker F27 were purchased, Sempati started scheduled flights to Singapore, Kuala Lumpur and Manila. In the mid and late 1980s, Sempati’s fleet expanded with the inclusion of the Fokker 100, Fokker 70 and Boeing 737-200.
Then the Airbus A300B4 is also included in the Sempati fleet so that flights to other places in Southeast Asia and Australia can be carried out. The company name was changed to Sempati Air in 1996. When the 1998 monetary crisis hit Indonesia, Sempati Air was forced to sell or return its aircraft, but still in June 1998 Sempati had to disband the company’s operations.
8. Jatayu Airlines
Jatayu Airlines (Jatayu Bracelet Sejahtera) is a charter airline based in Jakarta, Indonesia. Jatayu was founded in 2000 and has operated domestic and international flights.
The airline briefly stopped operating in 2007. After getting a government license again, the airline operated as a charter airline, mainly to fill the flying “slot” left by Adam Air, which had its license revoked at that time. In April 2008, the Ministry of Transportation of the Republic of Indonesia suspended the flight license of Jatayu Airlines because it did not meet the appropriate number of fleets (minimum five aircraft). [sources/photo special]
