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Jakarta Post

Observers question fate of Merpati as cargo company after Garuda’s rescue

  • Riza Roidila Mufti
    Riza Roidila Mufti

    The Jakarta Post

PREMIUM
Jakarta   /   Fri, October 18, 2019   /  06:24 pm
The Jakarta Post Image
A Merpati Nusantara Airlines aircraft sits on a runway.(Komas Images/Roderick Adrian Moses)

After flag carrier Garuda Indonesia led an initiative of 10 state firms to revive Merpati Nusantara Airlines, which ceased operations in 2014, all eyes turned to the small airline and its prospects in a new business venture. Observers and industry players have questioned whether Garuda and the state-owned enterprises (SOEs) can bring Merpati airlines back to life, yet also highlighted opportunities in the cargo business and aviation services, which will be the line of business focus for the ailing airline. Aviation observer Alvin Lie said the cooperation between Garuda and Merpati may have been agreed on without deep financial calculations. He expressed concern over the possibility that the cooperation burdens the state-owned enterprises involved, as opposed to providing mutual benefits. “I cannot understand the logic of this,” he told The Jakarta Post. Under the ...