Aviation News

January 13, 2011

Indonesian Low-Cost Carrier Mandala Airlines Ceases Operations

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By: BNO News
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Indonesia’s low-cost Mandala Airlines announced that it would cease operations Thursday to initiate “business restructuring.”

Mandala Airbus A319 PK-RMF

A Mandala Airbus A319 (PK-RMF) at Jakarta (Photo by Lofor, Creative Commons BY 3.0)

The airline has been facing a considerable debt which needs to be resolved in a commercial court, but Mandala Airlines president Diono Nurjadin said he hoped that the airline would be back to resume operations in around 45 days.

“Today is not an easy time for Mandala Airlines, but we believe with the support and understanding of our customers, agents, regulators and stakeholders and other interests, we will be able to get through this difficult period and emerge as a more resilient airline and will be able to better serve our customers,” Nurjadin said, adding that the airline could not disclose how much debt it has.

Mandala officially made the announcement on its website, where he apologizes “for the inconveniences caused to you as a result of this action. We are trying our best to address the situation and ask for your understanding and support.”

According to reports, several Mandala passengers were unable to board their Singapore to Jakarta flight on Wednesday night. Furthermore, their flight status has remained uncertain following the announcement.

Mandala Airlines, based in Jakarta, was founded in 1969 and serves several international destinations in addition to nearly two dozen domestic destinations. Their fleet currently consists of eight Airbus aircraft, but the airline ordered 25 additional planes in 2007.