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Merpati Nusantara cancels flights over unpaid fuel bills DENPASAR - Despite disruption to its flight schedules operating to other destinations, Merpati Nusantara (MZ) flights to and from Bali operated without interruption on Saturday, October 15, 2011.

Concern is growing that Indonesia might see Merpatri Nusantara flights come to a halt, as flights from Makassar and Surabaya have come to a halt as the state-owned oil company, Pertamina, is refusing to provide fuel to Merpati Nusantara in those locations due to large, unpaid fuel bills.

Effective October 15, 2011, Pertamina announced that it would no longer provide fuel to MZ aircraft in Surabaya and Makassar, creating concerns that the embargo could widen to other areas of the country.

An agreement was signed on February 12, 2011, between Pertamina, Merpati and PT Perusahaan Pengelolaan Aset (PPA) - the company charged with managing state-owned assets. That agreement was to have provided bridging funds to allow the state-owned airline to pay its outstanding fuel bills. To date, however, no payment has been made to Pertamina while the balance owed continues to escalate.

MZ reportedly owes US$62.15 million in overdue fuel bills to Pertamina. Meanwhile, Pertamina officials appear to be adamant that fuel supplies to MZ may be tightened even further unless payments are made on the overdue fuel bill.


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Related blog entries (category 'Travel') Tags: Merpati Nusantara, unpaid, fuel, bill, cancel, flight


Posted in Travel @ 17 October 2011 02:44 CET by Jeroen · 'Blog' RSS feed · permalink






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