The Jakarta-based low cost domestic carrier which introduced its first international routes to Singapore, Hong Kong and Macau just last summer, had been losing money in recent months and finally suspended all flights yesterday (13 January 2010). Company President Director Diono Nurjadin told a press conference on 12 January 2011 that the high cost of leasing much of its fleet had been a major factor, and that the carrier now needed to conduct a "major restructuring exercise" in order to attract additional investors. Mr. Nurjadin said that the carrier had applied for a commercial court-sanctioned 45-day window relieved from the need to make debt payments. Mr. Nurjadin also indicated that enquiries from potential investors had already begun and that he was confident of attracting new investment because, once restructured, and given the huge demand for air travel in the country, Mandala would make an attractive investment proposition. In the meantime, the return of eleven leased aircraft, including the previously active fleet of two Airbus A319s (leased from ILFC) and three A320s (two leased from Amentum Capital and one from Aerco Group) should have been completed yesterday. Mandala currently has 25 IAE V2500-powered Airbus A320s on order from the manufacturer, plus five options, with deliveries previously scheduled to start later this year.
Fri, Jan 14 2011 3:19 PM
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