Adam Air Struggling to Stay in the Air
Tuesday, 18 March, 2008 | 08:53 WIB

TEMPO Interactive, Jakarta: The Indonesian airline Adam Air is struggling to continue operating even though its financial situation is unstable after the withdrawal of one of its shareholders, PT Bhakti Investama.

Adam Air has scheduled negotiations with its associates, especially with airplane rental suppliers.
Adam Aditya Suherman, President Director of PT Adam Sky Connection, said that its flying service operations were in a critical state and currently services were not as usual.

“We are still serving the same routes, only our flight frequencies have been cut by at least half,” he said on Monday (17/3).

Adam acknowledged that at the moment the airline was experiencing difficulties in functioning normally.
At least 12 out of 10 functional airlines had been grounded by airplane rental suppliers due to unpaid rental costs.

“This is their right, we are only able to negotiate the payment re-schedule”, said Adam.

The cost for Adam Air to rent a Boeing 737, including its maintenance, is US$300,000 per plane per month.
The previous payment reschedule negotiations were canceled due to the departure of Bhakti Investama.
“Many of the suppliers questioned this,” said Adam.

Under these conditions, he said, the company's management was trying hard not to have to make employees redundant.
Adam once again expressed his disappointment at Bhakti's decision to withdraw, because, officially Bhakti is still registered as a shareholder.

On Friday last week (14/3), PT Global Transport Service, a subsidiary company of PT Bhakti Investama, announced its plan to withdraw its 50 percent share in Adam Air.

PT Bhakti Investama said that the shares withdrawal was because Adam Air does not improve its safety aspects and the management was also considered not to be transparent.
This shares withdrawal information has not been delivered to Adam Air’s management officially.

Previously, Transportation Minister Jusman Syafii Djamal said that he did not want to intervene.

Harun Mahbub