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LIPPO CIKARANG - The Indonesian airline Mandala Airlines has announced that it will cease all flights starting January 13, 2011. This was decided after the company fell victim to seemingly sudden financial problems a few days ago, which makes it necessary to restructure drastically. The company has filed for bankruptcy protection with the court earlier today.
Passengers as well as crew of the airline are surprised by the sudden rise of problems. Customers that have ticket for flights with Mandala Air have the right to get their money back according to the law, but this might become a problem since there is no money left anymore. The airline can also transfer passengers to other airlines, but more information about these possibilities has to come.
The Minister of Transport, Freddy Numberi, said earlier today that it is very likely that Mandala Airlines will not resume flights again. The certificates to fly are valid for 45 days after operations have stopped. After those 45 days, the company will receive it's first official warning. The third warning, after a maximum of one year, is directly followed by the removal of the certificate.
Other airlines like Lion Air and Batavia Air have already said that they are willing to take passengers from Mandala Air for as far as possible. The airlines themselves are most likely to gain from the fall of Mandala Airlines as parts of the route schedule will be picked up by other airlines if it is decided that Mandala Airlines will not fly anymore.
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