TheJakartaPost

Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post

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

Observers and industry players have questioned whether Garuda can bring Merpati Nusantara 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.

Riza Roidila Mufti (The Jakarta Post)
Premium
Jakarta
Fri, October 18, 2019

Share This Article

Change Size

Observers question fate of Merpati as cargo company after Garuda’s rescue A Merpati Nusantara Airlines aircraft sits on a runway. (Komas Images/Roderick Adrian Moses)

A

fter 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 agreement, signed on Wednesday, Merpati will operate an air cargo business for domestic and international routes using Garuda’s fleet. State logistics agency Bulog, trade company Perusahaan Perdagangan Indonesia, cement giant Semen Indonesia and fisheries firm Perikanan Nusantara will use the cargo services.

Alvin questioned the difference between Merpati’s new cargo business and other air cargo businesses. He warned of potential unhealthy business competition and monopolistic practices, as SOEs who signed the cooperation would be required to deliver their goods using Merpati cargo services, instead of making free market-driven decisions.

Apart from cargo, Merpati will also handle maintenance, repair and overhaul (MRO) services for state energy giant Pertamina and utility company PLN as a marketing agent and turbine maintenance service operator. Four state lenders – Bank Mandiri, Bank Tabungan Negara (BTN), Bank Negara Indonesia (BNI) and Bank Rakyat Indonesia (BRI) – will provide the necessary financing.

to Read Full Story

We accept

TJP - Visa
TJP - Mastercard
TJP - GoPay
{

Your Opinion Counts

Your thoughts matter - share your experiences, suggestions, and any issues you've encountered on The Jakarta Post. We're here to listen.

Enter at least 30 characters
0 / 30

Thank You

Thank you for sharing your thoughts. We appreciate your feedback.