For ailing state-owned carrier Merpati Nusantara Airlines, the problems it is facing may be too painful to endure, even without the further bad news that is likely to emerge.

The airline has not only sustained years of financial losses — including US$27.3 million in the first quarter of this year — but has also struggled to mend its safety record after one of its Chinese-made planes crashed in West Papua a year ago, killing all 27 on board.

There is also its former president director, Hotasi Nababan, who was recently declared a graft suspect.

But despite these troubles and amid efforts by the management to bring the airline into the black through Rp 560 billion ($62 million) worth of restructuring, another episode of squabbling is in motion.

State-Owned Enterprises Minister Dahlan Iskan abruptly fired Sardjono Jhony from his post as Merpati president director on Sunday.

The senior pilot had taken over at the airline in May 2010, succeeding the late Bambang Bhakti, who was known as an expert in seaports, as opposed to aviation.

Dahlan named Rudy Setyopurnomo to replace Jhony. Rudy, the airline’s chief commissioner for the past six weeks, was formerly president of PT Indonesian Airlines Aviapatria, a private carrier launched in 2001 before it went bankrupt and the Transportation Ministry revoked its Air Operator Certificate.

Djohny’s replacement incited protests from workers, particularly pilots, who have threatened to go on strike in the coming days.

“The government doesn’t know the real condition of Merpati and the people who have worked so hard to keep Merpati flying,” said the airline chief pilot Capt. Eman Supriatman, who is coordinating the strike.

Eman, who has worked for the airline since 1978, also criticized Rudy’s lack of experience and capability to manage Merpati, given his failure to have successfully run a smaller airline.

“I am afraid Merpati will face a worsening situation in the next three months. It will bleed even more,” he said.

But what is more disturbing is Eman’s claim that Johny’s dismissal was partly due to the airline’s refusal to buy Russian-made Sukhoi Superjet 100 aircraft, that have yet to be proven reliable.

Last Wednesday, a Superjet collided into a cliff on Mount Salak, around 80 kilometers south of Jakarta, killing all 45 on board.

“With the Sukhoi, the plan is to have Merpati serving short routes in Kalimantan and Sulawesi, and ending its pioneer route operations that have been the main function of the airline for years, linking remote areas in the archipelago,” Eman said.

Some Merpati staff will be transferred to Garuda Indonesia and its budget division, Citilink, Eman said.

Buying the Sukhoi is likely to place more burdens on Merpati as the airline remains traumatized after its Chinese-made MA-60 crash in Papua, and has been worried about new aircraft.

That crash led to criticisms of the reliability of the Xi’an Aircraft Industry aircraft, of which Merpati has agreed to buy 15 more, even though the deal was clouded with alleged rent-seeking between brokers and government officials.

A former investigator with the National Transportation Safety Committee (KNKT), Hana Simatupang, said Rudy was likely to be rejected by workers, given his credentials and lack of experience.

“Merpati’s problems are so complex that they cannot be solved immediately. This airline needs someone who has a successful track record in the airline business,” Hana said, adding that political intrigue and graft within Merpati might be the main hurdles to growth.

“Strong commitment from the government is really needed and the first step is to put the right man in the right position,” she said.

Rudy denied that he was incapable of lifting the airline’s fortunes, saying Merpati had not been managed well, leading to daily losses.

“We have to focus on marketing efforts to increase the load factor to up to 80 percent,” he said.

He said Merpati would cancel the purchase of 40 100-seat ARJ 21-700 jets from China, worth around $1.2 billion. “At the moment we will not buy new planes. We will review Merpati’s routes and programs immediately,” he said, refusing to comment on the Sukhoi purchase.

“The big plan is to have Merpati becoming a feeder of Garuda. I promise the airline will be back in the black within six months.”

Merpati saga

• Merpati has 380 pilots and 400 cabin crew on 33 aircraft, as of May 13.

• The airline has suffered losses of up to Rp 251 billion (US$27.3 million) in the first quarter of this year, up from Rp 106 billion in the same period last year.

• The airline has received a Rp 561 billion loan from the State Asset Management Company (PPA) on Dec. 30, 2011, to help it pay off its debts. The airline’s debt to state oil and gas company PT Pertamina for fuel purchased between Aug. 26 to Oct. 16, 2011, amounts to Rp 8.2 billion. The airline also owes Pertamina Rp 212 billion for fuel supplied in 2006 to 2007 and Rp 44 billion for the period between 2007 and Aug. 25, 2011, amounting to a total of 264.2 billion in debt.

Popular

Retail sales, consumer confidence ease as Idul Fitri boost dissipates

Students to rally against Prabowo amid economic pressures

Number of forcibly displaced people dips to 118 million: UN