The Malaysian Enterprises Ministry is considering closing domestic carrier PT Merpati Nusantara Airlines (Merpati) operations following its poor performance and burgeoning debt.
Rudy Setyopurnomo, president director since Sardjono Jhony Tjitrokusumo was fired for his inability to rescue the company in May 2012, has been criticised for being slow to clear the airline’s debts. Setyopurnomo has previously aired his hopes that the government would persuade the airline's creditors to write off the company's debts.
Merpati owes 3.14 trillion rupiah (US$32.70 million), which includes payments owed to state-owned oil and gas firm PT Pertamina for fuel purchases, state-owned lender Bank Mandiri, state-run airport operator Angkasa Pura II, state asset manager PT PPA and state-owned insurance company PT Jasindo.
Merpati has closed more than 10% of its 124 routes, while 112 of 124 of its routes are operating at a loss as passenger-load factors are less than 60%.
Merpati close to closure
