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
Jln. By Pass Ida Bagus Mantra,
Jln. Pucuk 1 No. 70X
Denpasar, Bali
Indonesia

24h:
+62 (0)812 3819724
Tel:
+62 (0)361 464 032, +62 (0)361 471 0242

Bali Discovery

SITE PATA ASITA
Bali News

Merpati Cash Crisis Continues

State-owned Airline Need for Significant Cash Injection Deepens.


Bali News:
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.

       

 
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
Working to Preserve and Promote Bali Arts
Bale Banjar Culture Club to Feature Peter J. Wilson and Made Sidia – World Renowned Producers of Balinese Stage Performances
(4/15/2018)
Does Bali Already Have a Second International Airport?
Editorial: A Practical Perspective on a Second Airport for Bali
(4/15/2018)
Shopping on Touchdown in Bali
New Duty Free Shopping Area for International Passengers Arriving in Bali
(4/15/2018)
Seeking Wider Horizons of Understanding
TEDxUbud Event Set to Stimulate Innovation and Creativity on Saturday, May 5, 2018
(4/15/2018)
Keeping the News Cycle Positive
Udayana Military Commander Calls on Media to ’Self-Censor’ and Avoid Controversial Reporting in Run-Up to IMF-World Bank Meeting
(4/15/2018)
Fugitives No More
Fugitive German and Indonesian Wife Captured by State Prosecutors to Start Serving Prison Sentences Handed Down in Bali Property Scam
(4/15/2018)
Enhancing the Quality of Bali Visitors
Tourism Ministry Outlines How Bali Can Attract Higher Quality Tourist Visitors
(4/15/2018)
Roll Out the Barrels
Australian Government Assisting Bali in Conquering Mounting Trash Problem
(4/15/2018)
The Rainbow Connection
Green Peace’s Rainbow Warrior Uses Bali Visit to Fight Coal-powered Electricity, Plastic Pollution and Lend Support to ForBALI’s Fight Against Reclamation of Benoa Bay
(4/15/2018)
Friday the 13th in Bali
Tourist Bus Kills One Man and Damages 6 Cars and 2 Motorcycles in Spectacular Chain-Collision Near Bali’s GWK Monument
(4/15/2018)
3-Month Sticker Visas for Vehicles Visiting Bali
Bali Government Seeking to set 3-month Limit on the Amount of Time Cars Registered Outside Bali can Spend in the Province
(4/15/2018)
Shown the Door
North Bali Immigration Deports Dutch Husband and Wife for Illegally Operating Two Rental Villas
(4/15/2018)
All [News]!