Merpati returns 17 leased planes to cut operational costs<\/p>\n
JAKARTA (JP): The state-owned airline operator PT Merpati
\nNusantara Airlines (MNA) has returned 17 of its leased planes to
\ncut swelling operating costs.<\/p>\n
Company president Budiarto Subroto said yesterday that the 17
\nplanes returned to their foreign owners earlier this week
\nincluded three F-100s, three Airbus-310s, one BAe-146s and 10 F-
\n28s.<\/p>\n
"We had to return the leased planes in order to survive in the
\ncurrent sluggish market," he said.<\/p>\n
However, he declined to mention the monthly payments required
\nto lease the planes.<\/p>\n
He said the company would also return two more Airbus-310
\nplanes to their foreign owner, French leasing company Partnair,
\non June 25 as part of its downsizing program.<\/p>\n
A company communications official Tondo Widodo said the
\nmonthly cost of leasing the Airbus-310s through the two year old
\nagreement was US$420,000 per aircraft.<\/p>\n
The loss of the 17 leased planes means that the Merpati fleet
\nnow consists of 53 planes, 36 of which the company owns and 27 of
\nwhich are leased.<\/p>\n
The company is currently operating three leased Boeing-737s
\nfrom PT Pengembangan Armada Niaga Nasional (PANN) at a monthly
\ncost of $110,000 per aircraft.<\/p>\n
Budiarto said the downturn in the country's airline industry
\nand the sharp drop in the value of the rupiah against the
\nAmerican dollar had severely hurt the company.<\/p>\n
Budiarto said that around 70 percent of the company's spending
\nwas in dollars, with the remaining 30 percent in rupiah.
\nOperating costs include leasing installments, fuel and the
\npurchase of spare parts.<\/p>\n
The rupiah rallied slightly yesterday to around Rp 15,000
\nagainst the dollar, but this slight improvement must be viewed in
\nthe context of its pre-crisis level around this time last year,
\nwhich was Rp 2,460 to the dollar.<\/p>\n
He said that the company's passenger load factor had also
\ndeclined sharply to around 50 percent as a result of the crisis.<\/p>\n
"The monetary crisis has forced most people to travel on land
\nrather than by plane," he said after signing a memorandum of
\nunderstanding between the firm and Lufthansa Consulting
\nyesterday.<\/p>\n
Under the agreement, the German company will assist Merpati to
\nrestructure their finances, routes and fleet.<\/p>\n
Budiarto said yesterday that Merpati had also slashed the
\nfrequency of flights serving certain domestic routes.<\/p>\n
The company, which focuses largely on domestic flights, is
\ncurrently only operating eight of its 14 CN-235s and eight of its
\n25 F-28 aircraft.<\/p>\n
Analysts have said that airlines across Asia, including those
\nin Indonesia, are now fighting for survival and that most
\ncarriers would have to slash costs by selling planes, sacking
\nstaff, cutting routes and returning leased planes.<\/p>\n
The country's flag carrier Garuda Indonesia announced late
\nlast week that it planned to return all of its leased aircraft.<\/p>\n
Budiarto said Merpati had yet to lay off workers, despite the
\ncrisis it is facing.<\/p>\n
Merpati finance director Desmon Ismael said the company had
\nannulled a cooperation agreement with PT Bimantara Graha
\nInsurance Brokers, a privately-run company linked to Soeharto's
\nfamily, to boost efficiency.<\/p>\n
Bimantara Graha Insurance Brokers is owned by the Bimantara
\nGroup, a large conglomerate controlled by Soeharto's second son
\nBambang Trihatmodjo. Bimantara Graha Insurance Brokers allegedly
\nmonopolized Merpati insurance.<\/p>\n
"We ended the agreement after former president Soeharto
\nstepped down late last month,' he said. (aly)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/merpati-returns-17-leased-planes-to-cut-operational-costs-1447893297",
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