Merpati expected to break even after big losses<\/p>\n
JAKARTA (JP): The money-losing Merpati Nusantara Airlines is
\nexpected to break even this year after splitting from its parent
\ncompany the national flag carrier Garuda Indonesia and getting
\nthree former Garuda executives as new directors, a minister said
\nyesterday.<\/p>\n
The separation, based on Government Regulation No 10\/1997
\ndated April 29, 1997, is due to be completed in the next two
\nmonths, Minister of Transportation Haryanto Dhanutirto said.<\/p>\n
\"The last phase of the separation process to establish Merpati
\nas an independent state airline company is being sorted in a
\nseries of shareholders' meetings,\" he said.<\/p>\n
This is the first time the government has split a state-owned
\ncompany into two separate firms,\" he said after installing seven
\ntop officials at his office here.<\/p>\n
Plans for the separation began in late 1993 in a bid to
\nimprove Merpati's performance, but the process was hindered by
\nasset ownership and other corporate problems.<\/p>\n
In a separate ceremony at Garuda's headquarters earlier
\nyesterday, Garuda's president, Soepandi, installed Merpati's
\nthree new directors, as part of the separation process.<\/p>\n
Overlapping claims worth millions of dollars and differences
\nof opinion on asset inventories have reportedly been some of the
\nmajor hurdles to the separation.<\/p>\n
Merpati faces a tough battle as it is known mainly as a
\nregional carrier that serves mostly domestic feeder routes and a
\nlimited number of regional routes, including Singapore, Kuala
\nLumpur and Melbourne.<\/p>\n
As well as unprofitable routes, gross inefficiency has hurt
\nthe 25 year-old Merpati because its fleet includes a variety of
\nairplanes.<\/p>\n
The company currently operates 92 aircraft, A-310-300s, B-737-
\n200s, F-28s, F-27s, ATPs, Casa-212s, Twin Otters and CN-235s --
\nmost are old.<\/p>\n
Informed sources say Merpati's losses declined to Rp 130
\nbillion (US$54 million) in 1996 from Rp 133 billion in 1995.<\/p>\n
The company is also burdened with Rp 600 billion in debts
\nwhich it expects to be converted into new government equity
\nshares.<\/p>\n
Soepandi yesterday installed Desmon Ismael as Merpati's new
\nfinancial director replacing Ishak Sumawiria.<\/p>\n
Merpati's other new top executives are Indra Setiawan as the
\ndirector of commerce replacing Agus R.S. Santoso and Sunarko
\nKuntjoro as the technical director replacing Mulyono.<\/p>\n
Haryanto said the three new executives were former Garuda
\nemployees. \"They were selected by a special team.\"<\/p>\n
Ismael, 42, was former head of Garuda's budgetary bureau.
\nKuntjoro, 46, had worked with Garuda for 20 years and was
\npreviously head of its computer division and Setiawan was
\npreviously head of Garuda's marketing plan and development
\ndivision.<\/p>\n
The seven officials installed by Haryanto yesterday afternoon
\nas his new staff experts included Purnomo Sidhi, Abdul Razak
\nManan, Ismedsjar and Ishak Soemawiria.<\/p>\n
P.P. Simatupang and Saad Ali Basaib were appointed members of
\nthe boards of supervision (commissioners) of the state-owned
\nrailway company Perumka and the state-owned bus operator Perum
\nDamri, respectively. Muchtar was installed as the new secretary
\nof the National Search and Rescue Agency. (icn)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/merpati-expected-to-break-even-after-big-losses-1447893297",
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