Merpati backs govt plan to seek SIA's help
Merpati backs govt plan to seek SIA's help
JAKARTA (JP): State-owned air carrier Merpati Nusantara
Airlines welcomes the government's plan to hire Singapore
Airlines as the airline's management consultant.
Merpati's president Wahyu Hidayat said on Monday seeking the
help of foreign airlines was part of the airline's program to
revitalize its operations.
"If the government really invites Singapore Airlines, we will
be happy to discuss all the possibilities, as long as the deal
will not inflict new debts on us," he added.
He said Merpati was also open to the possibility of Singapore
Airlines acquiring a stake in the company.
Wahyu said Merpati, however, had not been informed of the
government's plan.
Coordinating Minister for Economy and Finance Kwik Kian Gie
said earlier this month the government had held preliminary talks
with Singapore Airlines on the possibility of the airline
managing either of the state-owned air carriers Garuda Indonesia
and Merpati.
Kwik said the agreement could also include the possibility of
Singapore Airlines acquiring an equity stake in Garuda or
Merpati.
Garuda rejected the plan, arguing it was satisfied with its
current consultants Lufthansa Consulting AG and Deustche Bank,
and needed no additional consultant.
Garuda said it had performed better in terms of load factor,
revenue per seat per kilometer and on-time performance this year
thanks to the advice it received from Lufthansa Consulting AG and
Deutsche Bank, which were appointed in mid-1998 as part of
Garuda's corporate and debt restructuring programs.
Lufthansa Consulting helps reengineer Garuda's commercial and
operational aspects, while Deutsche Bank acts as financial
advisor.
Wahyu hoped the foreign assistance should not merely be
directed to helping Merpati's management but also in other
business partnerships.
"Basically, we are seeking a partner ... to allow us to
operate its aircraft and share the revenues between us
appropriately. The other alternative is to seek for a strategic
partner to inject fresh funds in our company," he said.
He said Merpati had been negotiating with some overseas
aircraft operators on business partnership programs.
Merpati and one foreign aircraft operator were currently
negotiating a business deal which would allow Merpati to operate
the operator's aircraft on a revenue-sharing basis, serving the
route to Indonesia from Fukuoka in Japan.
He said the cooperation was expected to help Merpati boost its
performance and increase revenues.
Merpati expects its operational income to reach Rp 900 billion
this year, far higher than last year's Rp 400 billion.
The airline has been operating at an average load factor of 71
percent over the past six months, much better than last year's
average of between 40 percent and 50 percent.
It serves about 269 routes, including three overseas flights,
with over 30 aircraft. (cst)