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Agencies want refunds, not shares in Mandala
Travel agencies have demanded low-cost carrier Mandala Airlines fulfill its promise to refund airfares that they deposited with the airline last year when its operation was suspended due to financial difficulties
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ravel agencies have demanded low-cost carrier Mandala Airlines fulfill its promise to refund airfares that they deposited with the airline last year when its operation was suspended due to financial difficulties.
Rudiana, deputy chairman of the Association of Indonesia Tours and Travel Agencies (Asita) and CEO of Wita Tours, said more than 30 companies had been waiting for the promise to be fulfilled for the past six months.
“Since the airline resumed its flights in April, it has promised to compensate the customers within six months. But, we have not seen any progress on this matter,” Rudiana told The Jakarta Post recently.
“It doesn’t only disadvantage the travel agencies but also the customers who have been loyal to them.”
He said the deposits amounted to around Rp 18 billion (US$1.87 million) in advanced booking payments for both domestic and international airfares.
When the longtime player made a comeback on April 5, the company made a commitment that this year it would compensate customers who had bought tickets for flights with Mandala Airlines.
Customers who did not use their tickets last year were promised some minor shares in the restructured Mandala.
“That is another new issue because we do not want to be shareholders in Mandala. We simply want our money back,” Rudiana added.
Asita and the Indonesia Air Ticketing Association (Astindo) are scheduled to meet with the airline management on Monday to further discuss the issue.
In January 2011, Mandala announced that it would suspend operations after revealing Rp 2.45 trillion in debts due to high leasing costs, resulting in 11 leased planes being returned.
“Under the new management and with approval from the high court on postponement of debt obligations in March last year, all debts to the creditors, including passengers, travel agencies and others have been converted into 15 percent shares in the company. Thus, compensation that we have made to our creditors is not in the form of cash,” Susie Charma, spokesperson for Mandala, said in a statement sent to the Post on Friday.
