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Short of Cash, Lion Air Asks for Delayed Payment of Airport Service Charges Due to Angkasa Pura I

Kompas.com reports that PT Lion Mentari Airlines (Lion Air Group) has formally asked for a delayed payment facility covering the months January-March 2019 from PT Angkasa Pura – the State-owned company that managed Indonesia’s major airports.

A copy of the request sent to Angkasa Pura held by Kontan.co.id reportedly saw Lion Air citing pressures experienced by the airline industry starting in late 2018 as the reason for requesting delayed payments. Lion Air also claimed revenue targets were not achieved due to low ticket prices and higher operating costs as the source of their current cash problems.

Danang Mandala Prihantoro, Corporate Communications Strategic Lion Air, told Kontan.co.id on Tuesday, June 4, 2019, that a formal letter was sent by the Airline  and discussions have commenced with Angkasa Pura.

Lion Air is delaying payment to Angkasa Pura for office rentals, parking fees, landing fees, aviobridge services, check-in counters, and baggage handling at all airports managed by the State-owned company.

Payments are being delayed for the period January to March 2019 in order to conserve cash and guarantee the continuing operation of flights and service to the public.

The Corporate Communication Senior Manager of PT Angkasa Pura I, Awaluddin, told the press that the subject communication from Lion Air was in the process of being cross-checked and verified.

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