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Adam Air to be Shut Down?

Indonesia Press Reports Signal Government Poised to Close Down Accident-Ridden Adam Air.

(3/24/2007) A page-one story in the Jakarta Post on Saturday, March 17, 2007 and a related article published in the previous day's edition of Kompas, have both signaled an imminent announcement from the Government that may spell the end of one of Indonesia's new low-cost air carriers.

Quoting Budi Mulyawan Suyitno, the Director General of Air Communications who also serves as the Vice-Chairman of the National Evaluation Team for Transportation Safety and Security (EKKT), the Government has reportedly decided to "liquidate" a yet-to-be-formally-named airline because of its "frequent accidents and lack of discipline in the care of spare parts."

While officials declined to specifically name the airline destined for the chopping block; Cheppy Hakim, the Chairman of EKKT, did say the Airline which was most often involved in air mishaps would be the "main focus" of any "liquidation" decision.

"Liquidation," in this context, would mean the withdrawal of the airline's operating licenses effectively closing down the subject carrier.

Adam Air Under the Spotlight

The Jakarta Post coverage adopted a more direct approach, openly suggesting that "Adam Air was bracing for possible closure" and quoted an anonymous official of the Airline as saying Adam Air was "prepared for the worst."

Adam Air lost an airplane with 102 souls on board on a flight between Surabaya and Manado on January 1, 2007, and then managed to break into two the fuselage of a B737-300 during a hard landing at Surabaya on February 21, 2007. No deaths or injuries were reported in the latter incident.

If Adam Air is closed as a result of the announcement expected during the week of March 18, 2007, it will offer concrete proof of a promised tougher approach to commercial air safety being adopted by the former Air Force Chief who was appointed to head the EKKT, set up last January by the Government.

Already suffering from reduced passenger loads as the public shies away from flying on Adam Air, the latest page-one speculation on the carrier's imminent shut down can only further exacerbate its problem of trying to fill empty passenger seats.

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