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Mandala Airlines Seeks Compensation from Airbus

Airline Wants Help to Defray $250,000 Additional Cost of EU Aircraft Destined for Indonesian Air Operations.

(1/4/2008) Tempo Interaktif reports that Mandala Airlines is negotiating with Airbus Industries regarding the increased cost of purchasing airplanes produced in the European Union (EU), an additional cost estimated at US$250,000 or around Rp. 2.3 billion per aircraft.

The added cost to an Indonesian air carrier of buying an European aircraft is the direct result of the continuing "blacklisting" of Indonesian registered aircraft in European airspace, necessitating a costly two-tiered registration process for any airplane purchased in Europe by an Indonesian company.

Warwick Brady, the CEO of Mandala confirmed to Tempo Interaktif that his Airline has ordered thirty A320 Airbus aircraft worth US$1.8 billion (approximately Rp. 17 trillion), with 6 of the planes slated for delivery in 2008.

As reported in Balidiscovery.com [See: An Aviation Blacklist that Cuts Two Ways], the Director General of Civil Aviation, Budhi Mulyawan Suyitno, said that the Government is urging Indonesian air operators not to purchase or lease European aircraft in order to avoid the added cost and delays of the double registration process.

Because of the current EU prohibition on the operation of Indonesian-registered aircraft in Europe, Indonesian airlines must now undergo European inspections and registration to obtain air clearance for delivery flights to Indonesia where, once delivered, the plane must undergo an additional inspection process prior to receiving an Indonesian registration number and commencing domestic operations.