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Batavia Air Ceases Operations

Batavia Airline Declared Bankrupt as Flight Operations Halted

(2/1/2013) Following the court-ordered bankruptcy of Indonesian airline Batavia Air on January 31, 2013, the airline's routes to 42 domestic destinations and a number of regional airports are up for grabs and being sought by the remaining members of the Indonesian aviation industry.

According to reports, Mandala Airlines will take over many of Batavia Air’s most lucrative routes.

The Central Jakarta Regional Court approved a petition for bankruptcy filed by IFLC, an international aircraft leasing company, claiming Batavia Air owed them US$4.68 million in outstanding debts in connection with the lease of two Airbus A330 aircraft.

Bisnis.com quotes the Director General of Civil Aviation from the Indonesian Ministry of Transportation, Herry Bakti S Gumay, who confirms he is in touch with the Indonesian airline industry seeking to close any gaps in the national air network caused by the sudden demise of Batavia Air.

“They (the other airlines) are working together with Mandala Air to cover the routes. I have also called the management of Lion Air, and I thing Sriwijaya will also help,” said Herry Bakti just hours after the closure announcement.

Bakti also expressed the hope that the airlines taking up the routes of Batavia Air would offer services at the minimum rate to the public.

The Ministry called on Batavia Air to have staff on hand at the airports to give information to the public showing with tickets issued on the airline.

Batavia Air and its receivers have promised to refund passengers holding flight tickets on the bankrupt air carrier.