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News Focus: Adam Air has three months to decide its fate
uusjio | March 22, 2008 at 11:25 pmby
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"This is an anticipatory step to ensure the safety of the flight," Budhi M Suyitno said. He said the internal conflict could affect the psychological conditions of the pilots that could lead to accidents.
The company now has three months to address its internal problems before its operating certificate is permanently scrapped.The operation was frozen in line with the government`s efforts to evaluate the performance of each airlines in the country.
Before the government temporarily revoked its operating certificate, Adam Air announced on Monday it might have to stop its flight operations as of March 21, 2008 because it had failed to pay the insurance premium for its aircraft which fell due on March 20, 2008. "We will stop our flight operations," President Director of Adam Air, Adam Suherman said.
Based on international aviation law, all aircraft must be insured before they are operated. The insurance company has sent an insurance cancellation note to Adam Air which fell due on March 20, 2008.
"The flight operations will temporarily be stopped pending the decision of the shareholders on the insurance premium payment," Suherman said.
As Adam Air was facing financial troubles, PT Bhakti Investama, which owns 19 percent of Adam Air through its unit PT Global Transport Services (GTS), and the Bright Star Perkasa business consortium, which holds a 31 percent stake, announced early this week they were pulling out of the domestic airline.
Data at Soekarno-Hatta international airport`s management indicated last week that Adam Air had a fleet of 22 planes which consist of two airplanes under repair, one under modification, one had an accident, 11 were still in operation.
Haryanto, head of airport-operating company PT AP II Soetta, previously said his company had impounded seven Adam Air aircraft and had parked them on the airport`s apron since Saturday (March 15, 2008).
However, some of the fleet has been withdrawn by their lessor. Two airplanes of PT Adam Air have been moved from Soekarno-Hatta International Airport to Singapore by their lessor.
"The two airplanes were flown to Singapore at the request of their lessor," Haryanto, said. The owner of the two planes wanted them parked at Singapore`s Seletar aiport for security reason.
PT AP II Soetta has allowed the planes to be taken to Singapore because there was a guarantee from Adam Air which also pledged that it would pay its debts.
PT Adam Air owed PT AP II Soetta Rp3.5 billion. It also owed Rp5.6 billion to other PT AP II branch offices. PT AP II Soetta had also impounded a number of Adam Air assets at a number of check counters because of unpaid receivables, which among others came from catering services, insurance premium, vehicle leasing fees, parking costs and counters fees.
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