Merpati books Rp 137.1b loss

Merpati books Rp 137.1b loss

JAKARTA (JP): PT Merpati Nusantara Airlines, a subsidiary of
national flag carrier Garuda Indonesia, suffered an estimated
loss of Rp 137.12 billion (US$58 million) last year, up from Rp
132 billion in 1995, Minister of Transportation Haryanto
Dhanutirto said yesterday.

"However, Merpati is expected to turn this around with a
profit of Rp 993 million this year," Haryanto told a working
session of the House of Representatives.

He said Merpati was one of three state companies under the
supervision of his ministry to suffer losses last year.

Garuda Indonesia, he said, lost Rp 87.44 billion last year,
down from a Rp 342.79 billion loss in 1995.

"But if proceeds from the sales of its assets amounting to
around Rp 212.09 billion were included, Garuda gained a profit of
Rp 124.65 billion last year," the minister said.

Director General of Air Transportation Zainuddin Sikado said
that Garuda had sold two hotels managed by its hotel subsidiary,
PT Aerowisata, which also operates catering and transportation
services.

However, he won't disclose the buyers and the sales prices.

Haryanto said that Aerowisata, another Garuda subsidiary,
gained an estimated profit last year of Rp 56.1 billion, up from
Rp 37.93 billion in 1995.

He said that PT Abacus Indonesia, a reservation service
company partly owned by Garuda, was expected to gain a Rp 1.98
billion profit for last year, up from Rp 113 million in 1995.

"This year, Aerowisata's and Abacus' profits are expected to
reach Rp 44.55 billion and Rp 1.63 billion respectively."

Haryanto said the 17 state enterprises overseen by his office
had asked the government for Rp 1.32 trillion in additional
equity in the 1997/1998 fiscal year.

"By the end of 1996, government equity in the 17 state
enterprises had reached Rp 4.51 trillion, including Rp 2.51
trillion equity in Garuda," he said.

He said the transport companies were expected to pay Rp 135.81
billion in dividends and Rp 441 billion in taxes this year to the
government.

The minister said yesterday the total assets of the 17 state
enterprises had been valued last year at Rp 19.78 trillion, up
from Rp 18.46 trillion in 1995.

Open sky

Haryanto told reporters yesterday that Indonesia would not
adopt an open-sky policy.

Last week, Singapore became the first Asian country to
conclude an open-sky agreement with the United States. Malaysia
plans to conclude an open-sky accord with the U.S. in the next
few months.

An open-sky plan terminates all restrictions on air routes and
services from each nation.

The U.S. is arranging talks with Taiwan, Brunei and New
Zealand on the policy.

Air Transportation Director General Sikado said yesterday that
Indonesia must not follow Singapore which did not have any
"domestic destinations".

"What they are targeting (by setting up the open sky deal) is
Indonesia," he said, adding that there would be no sudden impact
from the U.S.-Singapore open-sky deal.

Sikado said earlier that domestic airlines in Indonesia should
ally with overseas air carriers to face globalization.

He said that strategic alliances would be much better for the
country's aviation industry rather than an open-sky policy which
might hamper domestic airlines. (icn)