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 · Merpati Cash Crisis Continues
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

Merpati Cash Crisis Continues

State-owned Airline Need for Significant Cash Injection Deepens.


Bali News: Merpati Cash Crisis Continues
Click Image to Enlarge

(5/10/2004)

Merpati Nusantara Airlines (MZ) - the state-owned carrier that provide the only air link to many of Indonesia's most remote regions, is in serious need of a cash injection to continue to operate. That was the picture painted by the Managing Director of MZ, Mr. Hotasi Nababan, in recent testimony before Commission IV of the National Parliament in Jakarta.

The Airline faces debts of Rp. 1.3 trillion (approximately US$153 million) and difficulties in securing capital to upgrade their armada and keep apace of growing competition in the domestic air travel market.

Mr. Nababan warned the legislators that if current conditions continued and the airline did not get an injection of capital, the economic condition of the carrier will continue to worsen.

He told the officials attending the hearing, "Merpati needs support to convert government debt into share equity. We are also taking steps to make a share offering to secure new funds. Beside those steps, we hope that the company can eventually go public, but for now the priority it loan restructuring and the need for fresh cash."

Against its debt load of Rp. 1.3 trillion on its balance sheet MZ only has Rp. 500 billion (approximately US$58.8 million) of assets. Because of its negative equity position and limited working capital, Mr. Nababan feels that privatization of the Airline is the only realistic solution for the Airline.

The Airline's Managing Director went on to explain that while in 1993 MZ controlled 41% of the domestic air market, that figure has decreased to only 18% today.

Legislators, meanwhile, were less than receptive to Mr. Nababan's call for privatization. Eager to net money for the cash-starved treasury, lawmakers said they would only support privatization when MZ's equity position improved sufficiently to ensure a higher price for the Government in any eventual sale.


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


 
UBUD WRITERS & READERS FESTIVAL
 
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
Plain Spoken about Tourism
President-elect Joko Widodo Speaks to Bali About Tourism
(8/30/2014)
Bali Training the World’s Green Leaders
UN Secretary Ban Ki-Moon Visits Bali’s Green School and Praises it Revolutionary Commitment to Sustainability
(8/30/2014)
Walk a Mile in Their Shoes
Macbeth Footwear Teams Up with Solemen to Donate Shoes for the Poor
(8/30/2014)
Gypsy at the Wheel
Widespread Violation of Laws on Taxi Meter Use Damaging the Reputation of Bali as a Tourism Destination
(8/30/2014)
It's a Jungle Out There
Denpasar Zoning and Building Authorities Falling Miserably in the Enforcement of the Law
(8/30/2014)
Tough Rules for Hotel Permits in Kuta, Bali
Bali Stops Hotels on Postage Stamp Pieces of Land in Kuta
(8/29/2014)
A Park for Pedestrians
Pedestrian Underpass at Ngurah Rai Monument at Bali Airport Set to Open in Early 2015
(8/29/2014)
A Park for Pedestrians
Pedestrian Underpass at Ngurah Rai Monument at Bali Airport Set to Open in Early 2015
(8/29/2014)
We've Got Rhythm!
Bali's Famous and Inspiring Kecak Dance Has a Rich and Varied History
(8/29/2014)
In Style and Safety to Gili Trawangan
Bounty Cruises Mounts Luxury Daily Departures from Bali to Gili Trawangan
(8/29/2014)
In Style and Safety to Gili Trawangan
Bounty Cruises Mounts Luxury Daily Departures from Bali to Gili Trawangan
(8/29/2014)
In Urgent Need of Connections
PLTU Celukan Bawang Aiming to Start Producing Electrical Power for Bali in December 2014 - a Year Behind Schedule
(8/29/2014)
All [News]!
 
Tourism and Transport Tourism Agents