Merpati puzzled over F-28s from Garuda

Merpati puzzled over F-28s from Garuda

JAKARTA (JP): Merpati Nusantara Airlines, which filed an order
for eight aging Fokker-28 aircraft from its principal company
Garuda Indonesia, is puzzled by an offer for the leasing of the
same planes from three private firms.

Merpati's president, Ridwan Fatarudin, told reporters Thursday
that the three companies are offering the eight aircraft under a
package consisting of leasing, refurbishment and maintenance.

"We have never received a reply from Garuda about our purchase
proposal but we are wondering why it is that three private firms
are offering us the lease of the same planes," he said.

Ridwan did not disclose the names of the three firms but a
Merpati executive said they are KFS Aviation Incorporated of
Japan, PT Arthaska Nusaphala and PT Sakanusa Dirgantara.

"Anyway, we can lease the eight planes as long as the leasing
fee for each of them is set at US$56,000 to $60,000 per month,"
he said, adding that he determined the fee level on the basis of
the low price of the aging planes -- about $2.7 million to $3
million each.

He explained that Merpati, currently operating 17 Fokker-28s,
needs eight more similar aircraft, so that the airline can
guarantee the operation of 22 planes to serve its routes, while
two others are serviced and the other one is left ready to
replace any plane which, for what ever reasons, cannot operate.

The planned operation of additional Fokker-28s is necessary to
compensate the airline's excessive spending caused by the recent
purchase of three Fokker-100s at a steep price, he said.

Merpati was recently forced to buy the three Fokker-100s for
$26 million each. The three planes were actually part of 12
planes, priced at $32 million each, ordered by Garuda Indonesia,
the national flag carrier, but the airline canceled the order and
ordered Merpati to take them. Merpati finally took three of them
after their prices were lowered to $26 million each.

Ridwan yesterday denied rumors that a certain party has
pressured Merpati to lease the eight Fokker-28s from the three
private firms. "There is no external pressure on us and we want
to lease them to lower our operational costs as a compensation to
the excessive spending on Fokker-100s," he said.

He said he will resume negotiations with the executives of the
three companies next week.

"We expect to finalize negotiations in March," he said. (icn)