Merpati union demands board be overhauled
The Jakarta Post, Jakarta | Thu, 02/24/2011 8:37 PM
The worker’s union of state-owned Merpati Airlines said Thursday that the government needed to overhaul the airline’s board of directors to prevent the company from going bankrupt.
Union chairperson Indra Topan said bankruptcy was an immediate threat to the airline.
“It is obvious in the financial report. In 2010 Merpati posted a loss of almost Rp 24 billion [US$2.7 million],” he said, as quoted by kompas.com.
Kontan.co.id reported in December of last year that the airline was estimated to have lost Rp 10 billion in 2010.
Merpati reaped Rp 16.6 billion in net profits in 2009 thanks to a capital injection from the sale of Merpati’s offices.
According to Indra, the airline posted more than Rp 20 billion (US$2.26 million) in losses in January this year alone. He said the company was also having difficulties paying for fuel and electricity.
Indra said the new management of the airline was refusing to continue the government-instituted recovery program, thus putting the livelihoods of 1,300 employees and 500 contract-based employees at risk.
The general manager for Juanda International Airport’s state airport operator PT Angkasa Pura I Trikora Harjo A said that Angkasa Pura had sent an electricity bill to Merpati but they have so far received no response.
