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Govt gives Merpati last-chance cash boost
The government through its asset management company PT PPA will inject additional funds worth Rp 310 billion (US$33
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he government through its asset management company PT PPA will inject additional funds worth Rp 310 billion (US$33.65 million) into ailing PT Merpati Nusantara Airlines, in the hope the carrier will improve its financial performance.
“The Rp 310 billion will be the last capital injection from the government to Merpati,” State-Owned Enterprises Minister Mustafa Abubakar told reporters in Jakarta on Thursday evening.
“We expect Merpati’s performance to improve within a year, otherwise we have to consider its existence.”
Mustafa said the government was still processing the fund which would be disbursed soon, “because Merpati will operate 15 airplanes from China in June”.
It is believed that Merpati recently purchased 15 Chinese-made Xian MA-60 twin turboprop airplanes, each of which can carry 60 passengers.
It was earlier reported that PPA had previously injected Rp 300 billion into Merpati but that the funds were not enough to keep the airline afloat.
PPA president director Boyke Eko Wibowo Mukijat has revealed that Merpati required around Rp 2 trillion to improve its performance.
On Thursday, new Merpati directors were appointed. The State-Owned Enterprises Ministry appointed Sardjono Jhony Tjitrokusumo as president director, Adi Gunawan as vice president director, Wisudo as technical director, Asep Ekanugraha as operational director, Tonny Ahmad as commerce director and Farid Lutfhi as finance and administration director.
“Merpati is now an ailing company. The new board of directors has to come up with a new strategy for the company as well as improve efficiency,” Mustafa said when installing the new directors.
Newly appointed president director Sardjono said that improving Merpati’s financial condition would be a difficult task but promised to do his best for Merpati.
“It will not be easy to pull off a quick recovery for the company, but we will try,” he said.
The company is still striving to settle its unpaid debts with state oil and gas producer PT Pertamina and airport operators PT Angkasa Pura I and PT Angkasa Pura II.
Merpati’s outstanding debt was reported at Rp 1.6 trillion as of March 2010.
It has been reported that Merpati is targeting to reap Rp 20 billion in operational profits this year,
higher than the Rp 5.5 billion it brought in last year. Merpati is hoping the new Chinese-made aircraft it has purchased will help it reach the target.
The airline currently operates two Boeing 737-200s, six Boeing 737-400s and seven Fokker 100 jets.
