Indonesia’s Merpati grounded over debts

Indonesia’s Antara n ews agency has reported that state-run carrier Merpati Nusantara Airlines has temporarily suspended its operations while it attempts to restructure its business.


Indonesia’s Merpati grounded over debts


Indonesia’s Antara n ews agency has reported that state-run carrier Merpati Nusantara Airlines has temporarily suspended its operations while it attempts to restructure its business. “Merpati has come to the point where it can no longer operate as it should,” Merpati’s operational director, Captain Daryanto was quoted saying.

Merpati’s creditors have been putting the airline under increasing pressure recently, to settle its accounts. State oil company Pertamina has now stopped supplying fuel to Merpati until it pays its debt of around IDR165 billion (US$13.5 million). Other companies owned money include Indonesia’s airport operators and banks, with total debts estimated at around IDR6.7 trillion. The airline’s pilots also recently staged a one-day strike in protest at unpaid salaries.