Troubled Indonesian carrier Adam Air, which has been operating a reduced fleet owing to financial difficulties, has been grounded by the country’s transport ministry.

Adam Air was once one of Indonesia’s fastest-growing airlines but over recent days the cash-strapped carrier has had over half its fleet of 21 Boeing 737s grounded, forcing it to suspend more than 50% of its flights.

In a short statement released today, Indonesia’s transport ministry says it has grounded Adam Air with effect from midnight.

The transport ministry says it has taken the decision because of shortcomings in the airline’s operational, training and maintenance procedures.

It adds that, once these failings have been addressed, Adam Air can seek permission to resume operations. The ministry has given Adam Air three months to act or risk having all of its licences removed.

Adam Air president director Adam Suherman recently warned that the airline would be forced to cease operations on 21 March unless it raised cash to cover its aircraft insurance payments.

The carrier is 50% owned by Suherman’s family. The remainder belongs to companies linked to Indonesian investment group Bhakti Investama, which is seeking to withdraw from the airline.

Adam Air’s operations have been under scrutiny since it suffered a fatal 737 accident in January last year. A month later a hard landing badly damaged a second 737 and prompted a partial grounding by the government.

Shortly afterwards the airline featured among a group of Indonesian carriers ordered to improve their maintenance and training or face withdrawal of their air operator’s certificate.

Concern over the safety regulation of Indonesian airlines subsequently led to a blanket ban on services to the European Union.

Source:'s sister premium news site Air Transport Intelligence news

Adam Air 737 fleet grounded in February 2007

Incidents and accidents 2007