MANDALA CEASES OPERATIONS AND GROUND AIRCRAFT

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By TESTCustomwebLP TESTCustomwebLP January 13, 2011 20:46

MANDALA CEASES OPERATIONS AND GROUND AIRCRAFT

Due to financial problems, Indonesian carrier Mandala Airlines has been forced to ground its five aircraft and cease operations.

“Mandala Airlines will temporarily shut down its services as of Thursday, January 13, 2011. This action is taken to be able to concentrate on corporate restructuring in order to save the company,” says Diono Nurjadin, Mandala’s president and director. He said the airline was having a “management problem”.

The airline has filed for a stay in the repayment of its debt at the Central Jakarta Commercial Court, while it comes up with a restructuring plan. It has 45 days to file the new plan, after which Nurjadin expects Mandala to “get back to business”.

He also remains convinced the airline can attract new investment.

No redundancies have been announced and Nurjadin says employee salaries will be paid. The airline’s pilots will be temporarily placed at other carriers, such as Tiger Airways, while passengers holding Mandala tickets would receive refunds.

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By TESTCustomwebLP TESTCustomwebLP January 13, 2011 20:46
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