Bankrupt Batavia Air ceases operation

INDONESIA’s Batavia Air has stopped operations as of midnight on January 31 following a successful bankruptcy petition by aircraft leasing company International Lease Finance Corporation (ILFC) in the Central Jakarta Commercial Court.

Batavia Air has failed to make a US$4.68 million lease payment to ILFC for two Airbus A330s on December 13, 2012, Antara News Agency reported. The airline’s operation and ticket sales continued normally until the court’s decision on January 30.

Ministry of Transportation’s director of air transportation, Herry Bakti Gumay, said: “The Ministry has requested that Batavia Air give an alternative to passengers who had booked and bought tickets to choose another carrier, and other airline companies to provide services to the default airline’s passengers with the minimum price (available).”

In Singapore, passengers holding Batavia Air tickets can obtain refunds from the airline’s office at the basement of Changi Airport Terminal 2.

In 2012, Batavia Air was the target of a US$80 million acquisition attempt by AirAsia to beef up its presence in Indonesia, but the deal was called off in October last year (TTG Asia e-Daily, October 15, 2012).

Additional reporting by Mimi Hudoyo

Sponsored Post