Z
Zhao Yun
Guest
Published: Thursday January 13, 2011 MYT 1:23:00 PM
Updated: Thursday January 13, 2011 MYT 2:22:36 PM
Indonesia's budget airline suspends all flights
JAKARTA: Indonesia's budget airline, PT Mandala Airline, serving three regional destinations and domestic routes, has suspended all flights on Thursday, due to debt problems, spokesman of Indonesian Transport Ministry Bambang Ervan said here.
"Mandala temporarily stops all flights today (Thursday) because the company wants to restructure its debt," the spokesman said at the Transport Ministry.
Employees remove a model aircraft from Mandala Airlines head office in Jakarta, Indonesia, Thursday, Jan. 13, 2011. (AP Photo/Irwin Fedriansyah)
"The firm served routes to Singapore and other regional destinations such as Macao and Hong Kong. Most of its routes were domestic," he said.
However, the spokesman did not elaborate the amount of debt of the firm.
The company would shift those who had bought tickets to other airlines or return their money, said Ervan.
Indonesia's aviation industry has made progress after following the lifting of travel ban by European Union in July 2009. - Bernama
