Close
Bali Discovery Tours: Homepage
Bali Hotels, Bali Villas and Bali News from balidiscovery.com
Home Bali Contact Bali Practicalities Bali News Bali Services Bali Transportation Bali Sports Bali Excursions Bali Villas Bali Hotels
Home · News · Troubled Skies at Indonesia Airlines
Bali Hotels, Bali Villas and Bali News from balidiscovery.com
Bali Hotels
Bali Villas
Special Deals!
Packages
MICE Handling
Bali Excursions
Culinary - Dining
Guided Tour
Bali Spas
Bali Sports
Diving
Golf
Bali Transportation
Car Rental - Selft Drive
Private Jet Charter
Bali News
Bali Services
Bali Practicalities
Bali Contact
Bali Career
Home
 
Bali Update
Subscribe to our free weekly newsletter!
 
PATA header
PATA Gold Award 2007
Bali Update
PATA Gold Award Winner 2007
 
Bali Contact
Bali Discovery Tours
Komplek Pertokoan
Sanur Raya No. 27
Jl. By Pass Ngurah Rai,
Sanur, Bali, Indonesia

Tel:
++62 361 286 283

Fax:
++62 361 286 284

U.S.A. Fax:(toll free)
1-800-506-8633

U.K. Fax:
++44-20-7000-1235

Australian Fax:
++61-2-94750419

24h:
++62 812 3819724

Bali Discovery

SITE PATA ASITA
Bali News

Troubled Skies at Indonesia Airlines

Service Interruptions, Threatened Lawsuits, and Unpaid Bills Plagues New Budget Airline.


Bali News: Troubled Skies at Indonesia Airlines
Click Image to Enlarge

(5/15/2003)

One of the newest members of the growing circle of start-up Indonesias air carriers, Indonesia Airlines (IA) is having to deal with operational and legal challenges from those who lease them aircraft, from travel agents, and the company contracted to maintain its fleet.

The carrier, which operates daily flights from Jakarta to Surabaya and Denpasar (Bali), stopped all flight operations from May 5 – 13, a move that caused speculation in some circles that IA was nearly bankrupt. Meanwhile, IA's President Director, Rudy Setyopurnomo, has been quick to dismiss such rumors saying the shut down period of 8 days was necessary to consolidate operations and revise their ticket tariffs upwards.

On May 14th IA managed to resume its schedule of 3 flights per day from Indonesia's capital to Surabaya and Bali using B727-200 aircraft.

Shrinking Fleet

A report carried in the Indonesian-language Bisnis Indonesia indicated that, due to an inability to pay charter fees, two B737-400's on lease from Lufthansa and two B747-200 designated to fly haj pilgrims have been taken back by their owners, compeling IA to commence an urgent search for replacement aircraft.

11 Travel Agents Take Steps to Bankrupt IA

Eleven Indonesian travel agents have appointed a local law firm to file suit against the airline claiming Rp. 8.4 billion in damages (approximately US$ 988,000) resulting from the stranding of 2,111 haj pilgrims who had purchased packages from their agencies utilizing the flights offered by the troubled airline. According to the lawyer representing the agents, the religious pilgrims were unable to depart as promised during the last haj season when IA failed to obtain the necessary air operating permits form the Saudi Arabian government.

The suit filed by the travel agents seeks to declare the airline bankrupt due to its inability or refusal to settle the outstanding claims for damages rsulting from the cancelled flights.

Problems With Maintenance Facility

Problems on yet another front are developing between IA and its contracted provider of maintenance services PT Garuda Maintenance Facility Aero Asia, who claim they are owed US$ 300,000 for past maintenance service. IA has answered the claim from the Garuda subsidiary by counter claiming that the maintenance provider has failed to adequately care for spare parts and equipment entrusted to their custody.

An End to Cheap Fares

IA received widespread attention when they burst onto the domestic air market with prices of 50% or more less than some of its competitors on the same routes. These included Jakarta-Surabaya fares of only US$ 23 and Jakarta-Bali stand-by fares of around US$ 70 – prices substantially below those offered by Garuda Indonesia.

Since the recommencement of service by IA on May 14th, the fares being offered by IA are reported to have risen substantially as part of the airline's consolidation program.


© Bali Discovery Tours. Articles may be quoted and reproduced if attributed to http://www.balidiscovery.com.


 
 
Bali News by Bali Update
Subscribe to the Bali Update
Receive the latest news from Bali by email!



Our [Privacy Statement] explains how we handle the data you are providing.

 
Bali News by Bali Update
Explore the Archive of the Bali Update
Find related articles in our news archive!




or try to use Google Search :

Home · Bali Hotels · Bali Villas · Bali Excursions · Bali Sports · Bali News · Site Map · RSS

Bali News: More News
Murder at Bali Emerald Villas in Sanur, Bali
Long-Time Bali Resident Bob Ellis Murdered in What Police Believe was Murder-for-Hire Scheme Orchestrated by His Wife, Noor Ellis
(10/24/2014)
Fighting Malaria in Bali
Denpasar Health Officials Undertake Educative Steps and Fogging to Prevent Upswing in Dengue Fever Cases
(10/24/2014)
November Fuel Price Hike Increasingly Certain
Kompas.com Reports Premium Fuel Prices to Increase 46% on November 1, 2104
(10/24/2014)
Harmony Inside
A solo exhibition by I Made Wiradana, "Harmony Inside" November 20 - December 18, 2014 at Ganesha Gallery – Four Seasons Resort Jimbaran
(10/24/2014)
Living in an Age of Contagion
Bali Isolates Patient Suspected of Contracting MERS-CoV
(10/24/2014)
Denpasar to Dili Daily
Garuda Starts Daily Flights between Bali and Timor Leste
(10/24/2014)
Picking Fave – orites
Archipelago International Opens 5th Favehotel in Bali
(10/24/2014)
Bali and Beyond: Reading on Borneo
Bookshelf: Looking for Borneo – Insights into the Endless Beauty of the World’s Third Largest Island
(10/24/2014)
Adolescent Desires
Australian Philip Robert Grandfield Deported to Australia After Six Years in Prison on Pedophilia Conviction
(10/24/2014)
Change Has Gotta Come
Putting Bali’s Illegal Moneychangers Out of Business
(10/24/2014)
It’s Beginning to Look a Lotte Like Christmas
BIWA Christmas Bazaar at Lottte Mart Saturday, November 16, 2014
(10/24/2014)
Heinz's 100 Varieties of Indonesian Cuisine
Bookshelf: A New Approach to Indonesian Cooking by Heinz von Holzen
(10/20/2014)
All [News]!