RI domestic airlines on verge of collapse<\/p>\n
SINGAPORE (AFP): Indonesia's domestic airlines are on the
\nverge of collapse amid the economic turmoil caused by the
\nrupiah's steep depreciation, an aviation journal reported
\nyesterday.<\/p>\n
Hadi Soemarto, president of the Indonesian National Air
\nCarriers Association (INACA), said the four airlines -- Bouraq,
\nDAS, Mandala and Sempati -- were in \"serious danger\" of shutting
\ndown due to huge losses.<\/p>\n
\"We all fear that they are going to stop operating if the
\nmonetary crisis goes on like this,\" Soemarto told Flight Daily
\nNews, a journal published in conjunction with the Asian Aerospace
\ntrade show here.<\/p>\n
\"The domestic airlines only earn rupiah and the rate of the
\nrupiah is still going down even though the cost are based on U.S.
\ndollars. It is a very bad situation,\" he was quoted as saying.<\/p>\n
Soemarto held an emergency meeting with the Indonesian
\ndirector-general of air communications, Zainuddin Sikado, in a
\nbid to stave off the collapse, the journal said.<\/p>\n
Indonesia is the worst hit by the regional currency crisis
\nwhich has wreaked havoc in the region since mid-1997 and put the
\nbrakes on rapid economic growth. The rupiah has lost more than 70
\npercent of its value against the dollar.<\/p>\n
In the interview with the journal late Tuesday, Soemarto ruled
\nout a merger of Indonesian domestic airlines because their
\nmanagements varied.<\/p>\n
\"But they have to work together or else they can all collapse.
\nThat will be very bad for everybody. People still need to fly,\"
\nhe said.<\/p>\n
The airlines are seeking ways to postpone payments on leased
\naircraft until the financial crisis was resolved.<\/p>\n
Soemarto said: \"The biggest problem is they cannot afford to
\npay the leases for the aircraft. We hope that the aircraft owners
\nare more understanding and allow us to reschedule some leases.\"<\/p>\n
But he said there was no danger of Garuda Indonesia and
\nMerpati collapsing because they were owned by government.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ri-domestic-airlines-on-verge-of-collapse-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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