Tuesday, February 22, 2011

Sad news for Mandala Airlines, good one for Air Asia

The last time I flew Indonesia's Mandala Airlines was three years ago, from Jakarta to Yogyakarta. It was cheap, convenient and no hassle. Unfortunately, the budget airline has to cease operations last week due to cash flow shortfalls.

On 12th January management of Mandala Airlines informed the Department of Transportation that it could no longer continue operating.

On the same day Mandala submitted a debt repayment deferment request to the Commerce Court in Jakarta, with Mandala’s corporate secretary Nurmaria Sarona saying that the company had found it unable to fulfill its lease payment obligations on its aircraft. If the court request is successful Mandala will have 45 days to submit a business restructuring plan.

Mandala is a small budget airline that operates only five aircraft (3 Airbus 320 and 2 Airbus 319); these planes have been returned to their owners. Until March 2010 Mandala had operated 11 aircraft.

The company has no plans to permanently dismiss its staff, and hopes to find new investors to shore up its financial position, and begin operating again. Its pilots will be lent out to other airlines like Tiger Air (a sister company of Mandala), so that they can continue working.

This has opened more doors to Malaysia's Air Asia to dominate the Republic's budget air carrier business. Personally, I dont see the airline will counter much problems as Indonesians are already taking Air Asia as a 'truly Asean airline'.

Its Indonesian branch of Air Asia Indonesia has been in the news a lot recently. Unlike some of its competitors, it has been all good news. CEO Tony Fernandes is certainly bullish about the future of its Indonesian subsidiary.

In a recent interview in the Jakarta Post, he said the carrier's Indonesian operations may surpass its Malaysian unit, which is now more than three times as big. However, it still has a long way to go.

Indonesia AirAsia’s passenger number rose 8 per cent to 1.1 million in the quarter, according to a statement. The Malaysian operations boosted passenger numbers up by 12 per cent to 4 million.

Good job, Air Asia! At the same time, its sad to see the demise of Mandala Airlines, once a 'suppose-to-be Air Asia' for Indonesia.


10 comments:

hendra said...

comparatively, mandala started much earlier than air asia.

pity, they went burst bcos of bad management. it was one of indonesian pride

nor AB said...

ada kawan cakap, garuda tindas mereka sebab tak suka dengan tambang murah mereka ke destinasi tempatan.

air asia bertuah kerana mendapat sokongan kerajaan dan rakyat.

bukan mudah uruskan syarikat penerbangan tambang murah.

apa pun, saya bangga dengan air asia

Anonymous said...

prudent management is what we need in any business.

not that mandala airlines was not in good business but something went wrong, probably overspending and others.

suka air asia said...

saya harap air asia dapat mengisi kekosongan yang ditinggalkan oleh mandala.

air asia juga perlu meningkatkan mutu perkhidmatan jarak jauhnya agar dapat menandingi syarikat penerbangan antarabangsa yang lain.

sebagai syarikat tambang murah, mungkin air asia patut meneroka destinasi yang kurang diminati syarikat lain sedangkan ia banyak permintaan.

ini cuma pendapat saya.

frequent flyer said...

bro,

i flew mandala airlines on a few occasions from jakarta to pontinanak in borneo. lots of passengers. i think air asia can tap this market.

Anonymous said...

nasib yang sama menimpa sempati air dulu.

air asia perlu terus terbang pak!

B747-400 said...

why didnt air asia consider taking over mandala airlines?

pilot TUDM said...

dah banyak airline yang lingkup sejak 90an.

ingat tak asia-pacific airline milik malaysia dulu?

apa dah jadi? aku ada nampak kapal terbang lama dia kat airport kota kinabalu.

dulu bukan main gah lagi

Anonymous said...

jai,

what happened to our pelangi air?

gone also?

toncet said...

not easy to manage an airline, boss.

lucky we got idris jala to turnaround malaysia airlines. otherwise, MAS will also KAPUT!