The Indonesian Merpati Nusantara Airlines reported, that it decided to ground all its flights until at least the end of February as the company completely mired in debt. It is struggling to pay for fuel and insurance and give salaries to workers.
For already three months the phones in company are torn from angry customers’ calls who claim a refund for canceled flights. A few months ago Merpati Nusantara Airlines reduced its routes to cut costs, but their debt still currently amounts 8 trillion IRP or 658 million dollar USA.
The government and various state-owned enterprises don’t give any more loans to Merpati and the company Authorities think about selling assets and converting debt to equity.
Merpati Nusantara Airlines based in Indonesia suspends flights
News in Asia
The Indonesian Merpati Nusantara Airlines reported, that it decided to ground all its flights until at least the end of February as the company completely mired in debt.