Mandala Airlines announces major restructuring exercise
12-Jan-2011 Mandala Airlines today announced that it is planning to request a suspension of payment obligation to the Commercial Court allowing its management to restructure the business and to restore the airline to profitability.
"This is the best course of action to ensure the continued survival of the airline," said Mandala Airlines President Director Diono Nurjadin. "Over the past few months, Mandala Airlines has been performing at a commercial loss and the situation now is such that we need to restructure the company to pave the way for the entry of new investors".
Pak Diono said that the Commercial Court's granting of a suspension of payment obligation order will give Mandala Airlines' management a 45-day window to submit a business plan to restructure the company. "We are confident of attracting new investors to inject additional funds into the airline because, once restructured, Mandala Airlines will be an attractive investment. There is a huge demand for air travel in Indonesia and the market has lots of space for a well-defined and positioned mid-cost carrier."
"This is a difficult time for Mandala Airlines but we are confident that, with the support and understanding of our passengers, agents, regulators and other stakeholders, we will not only pull through but come back with a better and stronger airline to serve Indonesian air travelers. Mandala Airlines is well positioned to do this as it achieved a successful operational milestone when it achieved IOSA registration in 2009 to build on DGCA category I rating earned in 2007.
He also said that as part of the restructuring exercise Mandala Airlines will be suspending all flights from January 13, 2011. "We apologize for the inconvenience this may cause to our passengers but this is a necessary move if we are to focus on the restructuring exercise so that we may serve them better in the future," said Diono Nurjadin.