The death of our airlines

Five of our regular airlines are reported to be on the brink of being compelled to halt their operations because of soaring operating expenses and falling revenues sparked by the prolonged economic crisis. These five airlines -- Garuda Indonesia, Bouraq, Mandala, Merpati and Dirgantara Air Service -- are at present in severe difficulties because their revenues are unable to balance their operating expenses, which are mostly in foreign exchange, U.S. dollars in particular. A sixth airline, Sempati Air, has already ceased operating for the same reason.

Whatever one may say, our national airline industry is a national asset no less important than our banking industry and must be saved. The airline industry is closely linked to other industries, such as hotels and tourism. The growth and state of the airline industry has a powerful impact on those related industries. For this reason, our airlines must not all be allowed to cease operating and perish in such tragic circumstances.

There is no reason for the government to allow the above- mentioned airlines to halt their operations on the basis of mere financial calculations. Our nation's good standing and reputation is also at stake. If those airlines are allowed to die, it will be extremely difficult to revive them. The death of our national airlines also means the ruin of our national reputation.

-- Bisnis Indonesia, Jakarta