Merpati backs govt plan to seek SIA's help<\/p>\n
JAKARTA (JP): State-owned air carrier Merpati Nusantara
\nAirlines welcomes the government's plan to hire Singapore
\nAirlines as the airline's management consultant.<\/p>\n
Merpati's president Wahyu Hidayat said on Monday seeking the
\nhelp of foreign airlines was part of the airline's program to
\nrevitalize its operations.<\/p>\n
\"If the government really invites Singapore Airlines, we will
\nbe happy to discuss all the possibilities, as long as the deal
\nwill not inflict new debts on us,\" he added.<\/p>\n
He said Merpati was also open to the possibility of Singapore
\nAirlines acquiring a stake in the company.<\/p>\n
Wahyu said Merpati, however, had not been informed of the
\ngovernment's plan.<\/p>\n
Coordinating Minister for Economy and Finance Kwik Kian Gie
\nsaid earlier this month the government had held preliminary talks
\nwith Singapore Airlines on the possibility of the airline
\nmanaging either of the state-owned air carriers Garuda Indonesia
\nand Merpati.<\/p>\n
Kwik said the agreement could also include the possibility of
\nSingapore Airlines acquiring an equity stake in Garuda or
\nMerpati.<\/p>\n
Garuda rejected the plan, arguing it was satisfied with its
\ncurrent consultants Lufthansa Consulting AG and Deustche Bank,
\nand needed no additional consultant.<\/p>\n
Garuda said it had performed better in terms of load factor,
\nrevenue per seat per kilometer and on-time performance this year
\nthanks to the advice it received from Lufthansa Consulting AG and
\nDeutsche Bank, which were appointed in mid-1998 as part of
\nGaruda's corporate and debt restructuring programs.<\/p>\n
Lufthansa Consulting helps reengineer Garuda's commercial and
\noperational aspects, while Deutsche Bank acts as financial
\nadvisor.<\/p>\n
Wahyu hoped the foreign assistance should not merely be
\ndirected to helping Merpati's management but also in other
\nbusiness partnerships.<\/p>\n
\"Basically, we are seeking a partner ... to allow us to
\noperate its aircraft and share the revenues between us
\nappropriately. The other alternative is to seek for a strategic
\npartner to inject fresh funds in our company,\" he said.<\/p>\n
He said Merpati had been negotiating with some overseas
\naircraft operators on business partnership programs.<\/p>\n
Merpati and one foreign aircraft operator were currently
\nnegotiating a business deal which would allow Merpati to operate
\nthe operator's aircraft on a revenue-sharing basis, serving the
\nroute to Indonesia from Fukuoka in Japan.<\/p>\n
He said the cooperation was expected to help Merpati boost its
\nperformance and increase revenues.<\/p>\n
Merpati expects its operational income to reach Rp 900 billion
\nthis year, far higher than last year's Rp 400 billion.<\/p>\n
The airline has been operating at an average load factor of 71
\npercent over the past six months, much better than last year's
\naverage of between 40 percent and 50 percent.<\/p>\n
It serves about 269 routes, including three overseas flights,
\nwith over 30 aircraft. (cst)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/merpati-backs-govt-plan-to-seek-sias-help-1447893297",
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