Merpati to complete split from Garuda<\/p>\n
JAKARTA (JP): Minister of Transportations Haryanto Dhanutirto
\nsaid Merpati Nusantara Airlines will be completely separated from
\nits holding company, Garuda Indonesia, later this year.<\/p>\n
Merpati's management has been separate from Garuda since last
\nJuly to prepare for the break. The Ministry of Transportation and
\nthe Ministry of Finance have been sounding out further separation
\nof the assets and liabilities.<\/p>\n
\"Merpati's dependency on its parent company is so strong that
\n-- to tell you the truth -- the company is technically in
\ndisarray,\" Haryanto said last week.<\/p>\n
Merpati has been constantly criticized for its unprofitability
\nand poor service, especially the postponement and cancellation of
\nmany flights.<\/p>\n
Haryanto suggested that Merpati secure maintenance contracts
\nwith its partners to ensure the availability of its fleet, and
\ntherefore minimize postponements and cancellations.<\/p>\n
\"By making maintenance contracts, I hope Merpati will be able
\nto stand on its own within a year,\" Haryanto was quoted by Kompas
\nas saying.<\/p>\n
Merpati's president, Ridwan Fataruddin, said he will propose a
\nnumber of conditions for the separation.<\/p>\n
He declined to spell out his reservations, saying that he will
\nsubmit his proposal to the related ministries later this month.<\/p>\n
The separation of the two airlines was initiated in 1989 by
\nSoeparno, then president of Garuda. After the separation, Garuda
\nas the country's flag carrier, will focus only on international
\nflights and Merpati will concentrate on domestic services.
\nCurrently, Garuda still serves a number of domestic flights.<\/p>\n
Ridwan contended that Merpati cannot yet make a profit because
\nit operates too many types of aircraft.<\/p>\n
\"Whoever handles Merpati won't be able to make it profitable
\nunless its fleet is reduced to only two or three types of
\naircraft,\" Ridwan asserted.<\/p>\n
Merpati presently operates 78 aircraft of eight different
\ntypes, including 17 Fokker F-28s, 14 CN-235s, 13 Fokker-27s, 11
\nCassa 212s, nine Twin Otters, six Fokker F-100s, five ATPs and
\nthree Boeing 737-200s.<\/p>\n
Ridwan said operating eight types of aircraft sucks Merpati's
\nrevenues for maintenance and spare parts dry.<\/p>\n
\"We cannot operate the aircraft efficiently,\" he concluded.
\n(rid)<\/p>",
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