Indonesia's Batavia Air ceases ops after bankruptcy ruling
Indonesian domestic airline Batavia Air ceased flying today after a court ruled in favour of a bankruptcy petition against it, a company spokesperson said.
Indonesian domestic airline Batavia Air ceased flying today after a court ruled in favour of a bankruptcy petition against it, a company spokesperson said.
"Following the bankruptcy ruling, we regret to announce that Batavia Air has ceased operations starting Jan 31, 2013," Elly Simanjuntak said.
US-based International Lease Finance Corporation filed the petition after Batavia failed to pay US$4.68 million for the lease of several Airbus A330s by Dec 13 as agreed.
The Central Jakarta Commercial Court ruled in support of the petition yesterday.
Batavia Air, which served 11 percent of the domestic market, had planned to carry Muslim pilgrims on haj pilgrimage to Saudi Arabia, but failed to secure the hoped-for contracts.
The ruling came three months after AirAsia Bhd, Asia's largest low-cost airline, aborted a US$80 million deal to buy Batavia Air, citing excessive risk.
- dpa
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