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Indonesia’s Mandala Airlines suspends all flights


Published on Jan 13, 2011

Indonesian low-cost carrier, Mandala Airlines, has suspended all domestic and international services due to financial difficulties. A statement on the company’s website called the action a “major restructuring exercise” and said that the grounding of flights was only a temporary measure.

“This is the best course of action to ensure the continued survival of the airline,” Mandala’s President Director, Diono Nurjadin, said. “Over the past few months Mandala Airlines has been performing at a commercial loss and the situation is now such that we need to restructure the company to pave the way for the entry of new investors.”

The airline has been given 45 days to submit a business restructuring plan by an Indonesian commercial court. The exact level of Mandala’s debt was not reported, and it is not clear when services will resume. Based in Jakarta, Mandala operates international flights to Singapore, Hong Kong and Macau as well as to 17 Indonesian hubs. It was one of the four Indonesian carriers removed from the EU’s aviation blacklist in 2009, along with Garuda, Airfast and Premiair.

“This is a difficult time for Mandala Airlines, but we are confident that, with the support of our passengers… we will not only pull through but come back with a better and stronger airline,” Diono added.

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