Fri, 20 May 2011
From: The Jakarta Globe
By Francezka Nangoy

After a five-month search for new investors, Mandala Airlines’ prospects for the future soared as two companies announced they planned to buy stakes in the struggling airline.

Singapore-based Tiger Airways Holdings and Saratoga Investama, an Indonesian strategic investment company, announced their plans in a filing to the Singapore Stock Exchange on Thursday. Tiger Airways will acquire a 33 percent stake, while the Saratoga Group will buy 51 percent of Mandala.

Neither investor disclosed the value of their acqusition.

Sandiaga Uno, co-founder of Saratoga, told the Jakarta Globe on Thursday that Mandala would return to Indonesian skies.

“We believe there is strong growth potential in the Indonesian aviation sector due to the robust economic growth and Indonesia’s characteristics as an archipelago,” Sandiaga said.

He also said he was optimistic that the partnership with Tiger, which is known for its low-cost carrier expertise, would help Mandala benefit from the established infrastructure in Singapore. He expects the airline to “resume flying quickly and offer reliable and affordable service to its customers.”

Mandala has been searching for investors since it halted operations in January under the weight of Rp 2.4 trillion ($281 million) in debt.

Its debts were converted into shares after a Jakarta commercial court ruling in March.

According to a release from Tiger Airways, Mandala plans to adopt a low-cost business model. That sector is already packed with competition, aviation analyst Alvin Lie said.

“Mandala has to compete with six big companies in that segment, while Garuda is the only provider of premium-class service in domestic flights,” he said.

Indonesia’s domestic aviation industry is dominated by low-cost carriers such as Batavia Air, Lion Air and CitiLink, Garuda Indonesia’s sister company.

Analysts have argued that Mandala’s failed attempt to enter the budget sector was one reason the airline’s collapse.

Lower income from the sector added to pressure from the high costs Mandala had to pay to lease its airplanes from Indigo.

Herry Bhakti Singayuda, the director general of civil aviation at the Transportation Ministry, said Mandala’s management had already reported the acquisition to the ministry. “Mandala’s president director reported to me that they are planning to announce it [today],” he said.

Tiger’s statement said Mandala would operate domestic flights as well as international routes within a five-hour flying radius of Indonesia.

It did not give any details about aircraft, but Indonesian civil aviation law states an airline operator must fly at least 10 aircraft, five of which it must own.



News Search/Filter
Transaction Rates
19 Nov 18
Buy
Sell
AED1
3,979.23
3,979.23
AFN1
228.67
228.67
ALL1
134.03
134.03
AMD1
30.37
30.37
ANG1
8,300.32
8,300.32
AOA1
47.10
47.10
ARS1
408.50
408.50
AUD1
10,695.16
10,695.16
AWG1
8,117.57
8,117.57
AZN1
8,584.87
8,584.87
BAM1
8,534.53
8,534.53
BBD1
7,307.87
7,307.87
BDT1
175.85
175.85
BGN1
8,534.22
8,534.22
BHD1
39,018.91
39,018.91
BIF1
8.21
8.21
BMD1
14,615.74
14,615.74
BND1
10,703.46
10,703.46
BOB1
2,132.07
2,132.07
BRL1
3,903.78
3,903.78
BSD1
14,615.74
14,615.74
BTC1
80,716,019
80,716,019
BTN1
204.93
204.93
BWP1
1,378.95
1,378.95
BYN1
6,973.30
6,973.30
BZD1
7,309.13
7,309.13
CAD1
11,116.60
11,116.60
CDF1
9.01
9.01
CHF1
14,623.49
14,623.49
CLF1
625,138.79
625,138.79
CLP1
21.79
21.79
CNH1
2,109.63
2,109.63
CNY1
2,106.62
2,106.62
COP1
4.61
4.61
CRC1
24.27
24.27
CUC1
14,615.74
14,615.74
CUP1
567.60
567.60
CVE1
150.54
150.54
CZK1
641.93
641.93
DJF1
82.11
82.11
DKK1
2,235.68
2,235.68
DOP1
292.81
292.81
DZD1
123.89
123.89
EGP1
822.14
822.14
ERN1
974.42
974.42
ETB1
526.32
526.32
EUR1
16,683.13
16,683.13
FJD1
6,926.96
6,926.96
FKP1
18,759.29
18,759.29
GBP1
18,759.29
18,759.29
GEL1
5,972.94
5,972.94
GGP1
18,759.29
18,759.29
GHS1
3,050.43
3,050.43
GIP1
18,759.29
18,759.29
GMD1
294.50
294.50
GNF1
1.61
1.61
GTQ1
1,909.63
1,909.63
GYD1
70.44
70.44
HKD1
1,866.51
1,866.51
HNL1
607.34
607.34
HRK1
2,246.54
2,246.54
HTG1
203.20
203.20
HUF1
51.85
51.85
IDR1
1.00
1.00
ILS1
3,944.80
3,944.80
IMP1
18,759.29
18,759.29
INR1
203.60
203.60
IQD1
12.33
12.33
IRR1
0.34
0.34
ISK1
118.64
118.64
JEP1
18,759.29
18,759.29
JMD1
116.98
116.98
JOD1
20,599.97
20,599.97
JPY1
129.65
129.65
KES1
142.35
142.35
KGS1
212.73
212.73
KHR1
3.64
3.64
KMF1
33.86
33.86
KPW1
16.23
16.23
KRW1
13.03
13.03
KWD1
48,189.22
48,189.22
KYD1
17,678.46
17,678.46
KZT1
39.85
39.85
LAK1
1.72
1.72
LBP1
9.72
9.72
LKR1
83.35
83.35
LRD1
92.43
92.43
LSL1
1,040.77
1,040.77
LYD1
10,524.29
10,524.29
MAD1
1,541.95
1,541.95
MDL1
859.57
859.57
MGA1
4.05
4.05
MKD1
271.14
271.14
MMK1
9.19
9.19
MNT1
5.87
5.87
MOP1
1,826.28
1,826.28
MRO1
40.94
40.94
MRU1
399.01
399.01
MUR1
421.93
421.93
MVR1
945.39
945.39
MWK1
20.17
20.17
MXN1
725.55
725.55
MYR1
3,486.14
3,486.14
MZN1
240.76
240.76
NAD1
1,031.59
1,031.59
NGN1
40.35
40.35
NIO1
455.06
455.06
NOK1
1,733.00
1,733.00
NPR1
128.08
128.08
NZD1
10,028.56
10,028.56
OMR1
37,968.00
37,968.00
PAB1
14,615.74
14,615.74
PEN1
4,349.51
4,349.51
PGK1
4,367.59
4,367.59
PHP1
277.88
277.88
PKR1
109.48
109.48
PLN1
3,866.59
3,866.59
PYG1
2.48
2.48
QAR1
4,020.64
4,020.64
RON1
3,571.59
3,571.59
RSD1
141.16
141.16
RUB1
221.34
221.34
RWF1
16.56
16.56
SAR1
3,895.35
3,895.35
SBD1
1,825.92
1,825.92
SCR1
1,069.28
1,069.28
SDG1
308.69
308.69
SEK1
1,622.68
1,622.68
SGD1
10,643.91
10,643.91
SHP1
18,759.29
18,759.29
SLL1
1.74
1.74
SOS1
25.36
25.36
SRD1
1,959.74
1,959.74
SSP1
112.20
112.20
STD1
0.69
0.69
STN1
675.09
675.09
SVC1
1,683.65
1,683.65
SYP1
28.37
28.37
SZL1
1,035.99
1,035.99
THB1
444.74
444.74
TJS1
1,563.51
1,563.51
TMT1
4,164.05
4,164.05
TND1
5,055.58
5,055.58
TOP1
6,379.51
6,379.51
TRY1
2,737.87
2,737.87
TTD1
2,185.84
2,185.84
TWD1
474.76
474.76
TZS1
6.35
6.35
UAH1
530.72
530.72
UGX1
3.94
3.94
USD1
14,615.74
14,615.74
UYU1
449.04
449.04
UZS1
1.77
1.77
VEF1
0.05
0.05
VND1
0.63
0.63
VUV1
132.07
132.07
WST1
5,596.80
5,596.80
XAF1
25.43
25.43
XAG1
210,714.79
210,714.79
XAU1
17,869,843.50
17,869,843.50
XCD1
5,407.93
5,407.93
XDR1
20,303.90
20,303.90
XOF1
25.43
25.43
XPD1
17,267,721.69
17,267,721.69
XPF1
139.80
139.80
XPT1
12,364,743.45
12,364,743.45
YER1
58.37
58.37
ZAR1
1,045.00
1,045.00
ZMW1
1,243.79
1,243.79
ZWL1
45.34
45.34
Taxation Exchange Rates
31 Aug 16 - 06 Sep 16
USD 1
13,232.00
AUD 1
10,043.30
CAD 1
10,213.70
DKK 1
1,999.40
HKD 1
1,706.22
MYR 1
3,283.28
NZD 1
9,623.63
NOK 1
1,605.23
GBP 1
17,433.70
SGD 1
9,757.68
SEK 1
1,569.45
CHF 1
13,631.10
JPY 100
13,101.00
MMK 1
11.01
INR 1
197.29
KWD 1
43,920.70
PKR 1
126.23
PHP 1
285.00
SAR 1
3,528.53
LKR 1
91.12
THB 1
382.08
BND 1
9,756.53
EUR 1
14,885.50
CNY 1
1,987.61

Okusi Associates: Indonesian Business & Management Services