Batavia Air bankrupt, routes up for grab

Batavia Air bankrupt

Indonesia’s commercial court has declared Jakarta-based budget carrier Batavia Air bankrupt just months after AirAsia aborted a deal to invest in it, officials said January 31.

The airline abruptly grounded all flights just after midnight on January 31, leaving hundreds of passengers stranded across the country. The carrier failed to pay a $4.7 million debt that was due on December 13 from the purchase of two Airbus A-330s financed by US-based International Lease Finance Corporation (ILFC) through a leasing scheme. It was ILFC that filed a bankruptcy petition that was approved by the Indonesian court.

Batavia Air’s attorney, Raden Catur Wibowo, said the aircraft were used to fly Haj pilgrims. However, over the past three years, Batavia failed to win the bid for Haj flights and the airline was left unable to cover the costly expense.

Stranded passengers are now claiming refund for their purchased tickets from the airline. Batavia Air’s management said that passengers will be transferred to other airlines.

The Indonesian Ministry of Transportation said that Batavia Air 44 routes would be transferred to other airlines and are up for grab “immediately”.

 



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Indonesia's commercial court has declared Jakarta-based budget carrier Batavia Air bankrupt just months after AirAsia aborted a deal to invest in it, officials said January 31. The airline abruptly grounded all flights just after midnight on January 31, leaving hundreds of passengers stranded across the country. The carrier failed to pay a $4.7 million debt that was due on December 13 from the purchase of two Airbus A-330s financed by US-based International Lease Finance Corporation (ILFC) through a leasing scheme. It was ILFC that filed a bankruptcy petition that was approved by the Indonesian court. Batavia Air's attorney, Raden Catur...

Batavia Air bankrupt

Indonesia’s commercial court has declared Jakarta-based budget carrier Batavia Air bankrupt just months after AirAsia aborted a deal to invest in it, officials said January 31.

The airline abruptly grounded all flights just after midnight on January 31, leaving hundreds of passengers stranded across the country. The carrier failed to pay a $4.7 million debt that was due on December 13 from the purchase of two Airbus A-330s financed by US-based International Lease Finance Corporation (ILFC) through a leasing scheme. It was ILFC that filed a bankruptcy petition that was approved by the Indonesian court.

Batavia Air’s attorney, Raden Catur Wibowo, said the aircraft were used to fly Haj pilgrims. However, over the past three years, Batavia failed to win the bid for Haj flights and the airline was left unable to cover the costly expense.

Stranded passengers are now claiming refund for their purchased tickets from the airline. Batavia Air’s management said that passengers will be transferred to other airlines.

The Indonesian Ministry of Transportation said that Batavia Air 44 routes would be transferred to other airlines and are up for grab “immediately”.

 



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

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