REPUBLIKA.CO.ID, JAKARTA - Private airline Batavia Air ceased operations started on Thursday at 00:00 after Jakarta court considered PT Metro Batavia, the operator of Batavia Air, bankrupt as it failed to pay its debt.
"We grant the bankruptcy petition filed against Metro Batavia, entirely," chief Judge Agus Iskandar annouced during hearing on Wednesday. The bankruptcy petition was filed by the International Lease Finance Corporation (ILFC), global market in the leasing and remarketing of advanced technology commercial jet aircraft to commercial airlines.
Metro Batavia failed to pay leasing fees worth 4.688 million USD upon deadline on December 13, 2012, to ILFC for a fleet. The airline planned to use the fleet to serve Indonesian hajj pilgrims but it failed in the bidding process..
In mid 2012, Malaysian Airline AirAsia cancelled the plan to acquire 49 percent of Batavia's shares worth 80 million USD. Founder of AirAsia, Tony Fernandes, said the acquisition would only inflict losses to the company as the performance of Batavia finance was problematic.
Spokesman of Jakarta court, Bagus Irawan, said Batavia also had a debt to Sierra Leasing Limited worth 4.9 million USD. Before the verdict was announced, ILFC annuled the petition, but Batavia refused as the hearing reached the end.
"Batavia may have calculated their financial condition," Irawan said.
Batavia's lawyer, Raden Catur Wibowo, said management accepted the verdict. Batavia has seven days to decide whether to appeal the verdict.
Due to the verdict, 14 out of 33 Batavia's airplanes are taken by the owners. "We cannot operate," Wibowo said.
The court appoints four administrators to manage the transition of Batavia Air and help Batavia overcoming the impact of the verdict, including refund the tickets.
Administrator of Sultan Mahmud Badaruddin II Airport, PT Angkasa Pura II, secures the assets of Batavia Air in the airport. "We have guarded Batavia assets since Wednesday night," Manager Operation and Services of AP II Palembang, Agus Maulana, said on Thursday. Management of AP II instructed that all assets of Batavia Air could not leave the airport.
Causes disappointment
Meanwhile, dozens of Batavia passengers in Semarang, were disappointed as they could not refund the tickets. Branch office as well as ticket counter in Ahmad Yani International Airport were closed. "We need certainty," a passenger, Benny (37), said on Thursday.
Batavia has been operated since 2002 with zero accident. The airline provides 42 domestic and international flights.
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