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Air Paradise: Waiting for Government Support

Future of Airline May Depend on Whether Bali Government Prepared to Invest US$16.3 Million.

(4/28/2007) The on-again off-again plans for the re-launch of Air Paradise International (API) now appear to hinge on the answer to their appeal to the Government of Bali to spend Rp. 150 billion (approximately US$16.3 million) and assume a 51% share in the Bali-based air carrier.

API Director, Putu Oka Semadi, told the Indonesian language Bisnis Bali, "we are waiting for an answer from the provincial government of Bali who are still in the process of studying our share offer." The Directors of API made a formal proposal to Baliís Governor and legislators in January 2007 and have been waiting for more than 2 months for a formal reply.

According to API Directors, the inclusion of the Bali Government in the Airline would support the brand image of now-grounded airline and help re-instill consumer confidence.

In addition to the money sought from the Government of Bali, another Rp. 100 billion (approximately US$10.86 million) is needed to permit a re-start of the airline.

API Directors claim that they have received a pledge of support from an Indonesian investor, but are not prepared to divulge the name of the potential new Indonesian investor.

Directors still maintain that they will soon start service from Bali to the Australian cities of Perth and Melbourne with onward domestic connections to Surabaya and Jakarta. The Airline's operators are reportedly seeking leases of Boeing 737-400 and Boeing 767-300 aircraft.

Bisnis Bali reports that the Bali Planning Body (Bappeda) have concluded their review of the buy-in proposal from API and forwarded their recommendations to the State Audit Body.