Close
Bali Discovery Tours: Homepage
Bali Hotels, Bali Villas and Bali News from balidiscovery.com
Home Bali Contact Bali Practicalities Bali News Bali Services Bali Transportation Bali Sports Bali Excursions Bali Villas Bali Hotels
Home · News · Garuda to Purchase Defunct Linus Airways?
Bali Hotels, Bali Villas and Bali News from balidiscovery.com
Bali Hotels
Bali Villas
Special Deals!
Packages
MICE Handling
Bali Excursions
Culinary - Dining
Guided Tour
Bali Spas
Bali Sports
Diving
Golf
Bali Transportation
Car Rental - Selft Drive
Private Jet Charter
Bali News
Bali Services
Bali Practicalities
Bali Contact
Bali Career
Home
 
Bali Update
Subscribe to our free weekly newsletter!
 
PATA header
PATA Gold Award 2007
Bali Update
PATA Gold Award Winner 2007
 
Bali Contact
Bali Discovery Tours
Komplek Pertokoan
Sanur Raya No. 27
Jl. By Pass Ngurah Rai,
Sanur, Bali, Indonesia

Tel:
++62 361 286 283

Fax:
++62 361 286 284

U.S.A. Fax:(toll free)
1-800-506-8633

U.K. Fax:
++44-20-7000-1235

Australian Fax:
++61-2-94750419

24h:
++62 812 3819724

Bali Discovery

SITE PATA ASITA
Bali News

Garuda to Purchase Defunct Linus Airways?

Move Could Be Shortcut to Obtaining Operating Licenses for Subsidiary Citilink.


Bali News: Garuda to Purchase Defunct Linus Airways?
Click Image to Enlarge

(6/8/2009)

Garuda Indonesia is considering a possible purchase of defunct Linus Airway as a short-cut to obtaining the needed operational certificates for their subsidiary Citilink.

The Director General of Civil aviation, Herry Bakti S. Gumay, told Bisnis Indonesia that Garuda plans to buy the domestic carrier fotced by financial difficulties stopped flying on April 27, 2009. "I heard that Garuda intends to buy Linus who already hold an aviation business license (SIUP) and an air operators certificate (AOC) for the scheduled air services," Herry explained.

Herry said his office supported Garuda's plans to purchase the majority shares of Linus because foreign parties are not allowed to buy more than 49% of Linus' shares.

Herry admitted to the press that he did not know the latest developments in Garuda acquisition plans. Meanwhile, the CEO of the national carrier, Emirsyah Satar, refused to comment to the press regarding his plans for thhe acquisition of Linus.

Bisnis Indonesia quotes a government official close to Garuda as confirming that the state-owned airline's Board of Commissioners is in the process of exploring the feasibility of purchasing Linus as a means to obtain is operating licenses. In purchasing Linus the national airline would also acquire its operating licenses issued before February 2008, pre-dating new regulations that require Indonesian airlines to operate a fleet of at least 10 aircraft.

Meanwhile, the President Director of Linus Airways, Indra, said his company was prepared to entertain offers from strategic investors, both domestic and foreign. Indra explained: "we are flexible to acquisition, depending on the investor. If someone wants to buy 100% of the shares we can release our shares, but if someone wants take only a majority shareholding with us as a partner – we are also open." Indra that while Linus Airways would receive offers from Garuda, they were already in negotiations with other parties.

According to Indra, he had once held informal talks with Emirsyah Satar, but those discussions never touched upon acquisition. He also told the press that he was in discussions with a strategic investor with the aim of resuming flight operations.

Added Urgency

Bisnis Indonesia reported on Saturday, June 6, 2009, that the Indonesian Department of Civil Aviation has formally stripped Linus Airways of all its route permits in accordance with rules mandating that any airline failing to fly for more than 30 days lose its route rights.

The routes formerly operated by Linus Airways and now up for grabs by Indonesia’s operating airlines are:

• Batam - Palembang

• Batam – Pangkalpinang

• Batam – Pekanbaru

• Jakarta – Palembang

• Jakarta – Pangkalan Bun

• Jakarta – Semarang

• Semarang – Pangkalan Bun

• Jakarta – Tanjungpandan

• Medan – Pekanbaru

• Pankalpinang – Tenjungpandan

In quick response to the government’s route suspension, two airlines - Riau Airlines and Kartika Airlines have forwarded application seeking assume operational rights on the dormant routes.

The Director of Civil Aviation, Tri S. Sunoko, told the press that the withdrawal of route permits is a preliminary to the formal suspension of the defunct airlines' air operating certificate.

Loan Restructuring for Garuda

The financial director of Garuda, Eddy Purwanto, told the press that his airline had successfully restructured US$650 million in loans, reducing that amount to US$450 million with repayment extended until 2015.

Garuda has appointed Rothschild’s as their international financial advisors to assist in restructuring it debts.

Emirsyah Satar has confirmed that the airline is completing negotiations with Bank Mandiri regarding the loans owed to the Indonesian bank by Garuda.


© Bali Discovery Tours. Articles may be quoted and reproduced if attributed to http://www.balidiscovery.com.


 
 
Bali News by Bali Update
Subscribe to the Bali Update
Receive the latest news from Bali by email!



Our [Privacy Statement] explains how we handle the data you are providing.

 
Bali News by Bali Update
Explore the Archive of the Bali Update
Find related articles in our news archive!




or try to use Google Search :

Home · Bali Hotels · Bali Villas · Bali Excursions · Bali Sports · Bali News · Site Map · RSS

Bali News: More News
Heinz's 100 Varieties of Indonesian Cuisine
Bookshelf: A New Approach to Indonesian Cooking by Heinz von Holzen
(10/20/2014)
We Get More Mail!
Folly has its Price. Spirited Comments of Disaffection Continue to Flow in About Bali’s Newly Renovated Airport
(10/20/2014)
Who Owns Bali’s Heritage
Legality of Badung Regency Funding of Taman Ayun Questioned by Badung Legislator
(10/19/2014)
The Gods Must be Irritated
French Climber Evacuated From Upper Slopes of Mount Agung
(10/20/2014)
Sauvetage en Mer
Bali Lifesavers Show Their Skills at International Surf Rescue Games in France
(10/19/2014)
Chefs Al Fresco in Sanur Bali
Bali Culinary Professionals to Meet at Swiss-Belresort Watu Jimbar on Saturday, October 25, 2014
(10/19/2014)
World Travel Agents to Meet in Bali
United Federation of Travel Agents to Meet in Bali November 16-19, 2014
(10/19/2014)
Travel May be Ebola’s Biggest Victim
Editorial: In the Unfolding Ebola Epidemic Crisis the Most Deadly Symptom May be Fear
(10/20/2014)
Human Charity – On the House
‘Together as One’ Fun Run Raises More than US$9.000 to Improve Housing for the Poor in Bali
(10/19/2014)
Passing Gas
Denpasar, Bali Mayor Joins Chorus Urging Port of Benoa Not be Used for LNG Depot
(10/19/2014)
Ignoring the Protests
Tirta Wahana Bali International to Go Ahead with Benoa Bay Reclamation Project
(10/19/2014)
Ease of Access
Indonesia Fails to Enforce Rules on Handicapped Access
(10/18/2014)
All [News]!