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Government grounds financially troubled Merpati
The government has finally opted to temporarily halt the operations of state-owned Merpati Nusantara Airlines after the troubled carrier failed to resolve its financial difficulties
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T
he government has finally opted to temporarily halt the operations of state-owned Merpati Nusantara Airlines after the troubled carrier failed to resolve its financial difficulties.
Transportation Ministry director general for air transportation Herry Bakti Gumay said in Jakarta on Saturday that the airline would no longer be allowed to fly from Monday next week.
'Next week, we will freeze Merpati's air operator certificate [flight permit],' he said, adding that his office did not have any choice but to temporarily do so as no solution to the airline's financial problems had been found.
He said the airline could resume operations if it solved its financial difficulties through an acceptable restructuring process. 'If it's ready it can fly. Merpati can get its license again,' Herry said.
Merpati stopped operations on Feb. 1 due to its inability to find an acceptable solution to mounting debts, which reached a total of Rp 6.7 trillion (US$549 million).
In 2001, the government planned to shutdown the carrier, which mostly served commercial flights in remote areas ' particularly in eastern Indonesia. However, the plan was dropped and the government instead injected fresh funds into the company, amounting to Rp 400 billion.
However, the cash injection failed to improve the airline's financial conditions and its debts rose to Rp 6.7 trillion. The airline is now unable to meet its payments on insurance premiums and employee salaries, in addition to its debts, particularly to state-owned oil and gas company Pertamina.
The announcement of the airline's temporary demise followed the mass resignations of the company's pilots. The Merpati Pilot Association (APM) announced on Friday that 50 of its 178 members had decided to quit.
Merpati, which employs 1,680 workers, also terminated the contracts of its 300 outsourced workers.
The government has offered 19 exclusive routes operated by Merpati to other airlines. The routes include Biak-Sorong, Papua; Makassar, South Sulawesi-Maumere, East Nusa Tenggara (NTT); Makassar-Merauke, Papua; Manado, North Sulawesi-Palu, Central Sulawesi; and Makassar-Jayapura, Papua. (alz)
