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Jakarta Post

Ailing Merpati buys 20 planes worth $140m from Dirgantara

  • The Jakarta Post

Jakarta   /   Fri, July 20 2012   /  09:33 am

Debt-ridden Merpati Nusantara Airlines (Merpati) on Thursday signed an agreement with state-owned aircraft manufacturer Dirgantara Indonesia to purchase 20 units of the 28-seater, turboprop-powered CASA C-212 to expand its flight network to the country’s more remote locations.

The aircraft, designed specifically to fly short and medium distances, is priced at around US$6 to $7 million each, making the deal worth up to $140 million in total, said the company’s newly appointed president director Rudy Setyopurnomo.

“The procurement of these CASA planes, complete with their state-of-the-art technology, reflects Merpati’s commitment to develop the aviation industry in Indonesia,” he said, expressing his optimism that procuring the planes would benefit Merpati, as the country currently has a high, untapped demand to fly short and medium distances.

Four of the 20 ...