Merpati pilot union against privatization plan<\/p>\n
Tony Hotland, Jakarta<\/p>\n
The Association of Pilots of PT Merpati Nusantara Airlines has
\nrefused the management's plan to privatize the state-owned
\ncompany, but failed to disclose any details regarding the
\nrefusal.<\/p>\n
However, Merpati's general manager in charge of corporate
\naffairs Imam Turidy said the dispute between the association and
\nthe company's management was simply a misunderstanding.<\/p>\n
\"They thought the privatization plan would be conducted before
\nthe current government ends its tenure. The fact is, we're only
\nmaking preparations to get permission for the privatization. The
\nprivatization itself will hopefully take place next year,\" he
\nsaid.<\/p>\n
Merpati is hoping that by privatizing the company it will help
\nremedy its worsening financial state and enhance its
\ncompetitiveness. It currently has Rp 1.3 trillion (US$152.94
\nmillion) in debts, with assets standing at Rp 800 billion.<\/p>\n
The House of Representatives has demanded that the
\nprivatization be executed after the airline restructures its
\nbusiness and debts to assure its health and prevent a low sales
\nvalue.<\/p>\n
The airline is trying to speed up the conversion of its Rp 225
\nbillion debt owed to the government into equity and is in talks
\nwith other creditors, such as Bank Mandiri and national flag
\ncarrier Garuda Indonesia, to do the same with those debts owed.<\/p>\n
Merpati owes Rp 230 billion to Bank Mandiri and Rp 246.7
\nbillion to Garuda Indonesia.<\/p>\n
\"We hope to complete the restructuring of our debts within the
\nnext two months. After our financial sheet is balanced, it would
\nbe easier for us to get loans from banks, and to conduct a
\nprivate placement,\" said Imam.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/merpati-pilot-union-against-privatization-plan-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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