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YLKI supports Merpati’s return
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A Merpati Nusantara Airlines plane (Komas Images/Roderick Adrian Moses)
T
he Indonesian Consumers Foundation (YLKI) supports the return of state-owned aircraft carrier Merpati Nusantara Airlines, heralding it a “positive catalyst” for equilibrium in a domestic industry dominated by Lion Air group, with a market share of 51 percent, Garuda Indonesia with 31 percent and Sriwijaya with 13 percent.
“Merpati can bring healthy competition, because there is now unhealthy market domination,” said YLKI deputy chairman Sudaryatmo as reported by tempo.co.
He said this was detrimental for consumers because they would have to bear the repercussions of any problem faced by the dominant player, such as when Lion Air experienced numerous flight delays and cancelations in 2016 as their pilots went on strike over workers’ rights violations.
He added that Merpati could provide a public service for consumers by operating flights, with financial support from the government, into remote areas in the country.
Merpati discontinued operations in February 2014 after having accrued more than Rp 10.95 trillion (US$749.38 million) in debt to over 80 debtors. However, the Surabaya Commercial Court issued a debt postponement petition for the company on Wednesday, giving it a second chance to pay off its dues. (brf)
