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Jakarta Post

Bankrupt Batavia to stop service

Jakarta   /   Thu, January 31 2013   /  11:20 am

Starting Thursday, privately owned Batavia Air will fully halt operations following a Central Jakarta Commercial Court ruling that declared the carrier bankrupt for failing to pay for aircraft it had leased.

“The management [of Batavia Air] accepts the court’s decision and will stop operations starting on Jan. 31,” Batavia Air lawyer Raden Catur Wibowo said in Jakarta on Wednesday.

The International Lease Finance Corporation (ILFC) filed a bankruptcy petition against the carrier after it had failed to pay US$4.68 million for two leased Airbus A330s for three years.

“In the company’s plan, the aircraft were supposed to be used to transport Indonesian pilgrims during the annual haj season. But, the airline was not given slots [by the regulator] to fly to Mecca,” Catur explained.

Both parties had tried to settle the problems, but they failed to fi...