Batavia Air Declared Bankrupt In Today's Memory, January 30, 2013

The plane is from the airline Batavia Air. (Wikimedia Commons)

JAKARTA Memories of today, 11 years ago, January 30, 2013, the Central Jakarta District Court (PN Jakpus) declared Batavia Air bankrupt. The decision made all Batavia Air operational activities stop completely. The impact was that hundreds of passengers were abandoned and disappointed.

Previously, Batavia Air was known as one of the airlines that existed in the country. Problems arose when Batavia Air began to look at the hope of participating in the hajj transportation tender. Batavia Air rented many planes to meet the requirements, but the tender had not been obtained. Like it or not, the debt piled up.

Indonesia is actively sending pilgrims to worship to Saudi Arabia. In fact, Indonesia is one of the countries that sends the most pilgrims in the world. This condition makes many parties see a potential big advantage behind the pilgrimage. Batavia Air, for example.

The well-known private airline Indonesia wants to participate in the Hajj transportation tender since 2009. This wish is not limited to mere mouth. They proved it with their seriousness in participating in the tender. Batavia Air then chose to rent several Airbus 330 aircraft from the International Lease Finance Corporate (ILFC).

The aircraft rental agreement was made in December 2009 and is valid until December 2015. The assessment is to complete the requirements for Hajj transportation. However, the Ministry of Religion (Kemenag) has full power to determine the aircraft that is the transportation of Hajj.

Batavia Air was never an option. Three times participating in the tender ended the same as: failed. As a result, the plane rented was not optimal. Batavia Air was also required to pay rent. This fact made Batavia Air shake.

The issue of financial difficulties began to be smelled. Moreover, this condition was confirmed by Batavia's inability to pay off debts due on December 13, 2012.

Batavia Air hopes that the profit from the aviation business will rely on the Airbus A330-302 aircraft they leased. The plane is planned to be the carrier of the pilgrims. But is it permissible, three times participating in the Hajj transportation tender, never once did the airline win".

In fact, the company already owes Airbus from the ILFC, the aircraft rental company. In the end, Batavia was unable to pay a debt of US$4.69 million, which matured on December 13, 2012. That amount of debt accumulated the rental fee plus interest delay payments. Batavia also went bankrupt," explained Yuliawati and Joniansyah in his article in Tempo magazine entitled Asset went missing, Kurator Meredang (2014).

At first Batavia Air tried to survive. However, Batavia Air's ability to pay off debts is doubtful. Moreover, Batavia does not only owe it to a mere IFLC. Batavia Air is known to have other debts, which in total reach Rp2.5 trillion.

IFLC took a stand. They submitted a bankruptcy application to the Central Jakarta District Court because Batavia Air was unable to pay off debts. As a result, the Central Jakarta District Court stated that Batavia Air was bankrupt on January 30, 2013.

The bankruptcy decision then forced all operational activities of the airline Batavia Air to stop operating starting at 00.00 WIB, January 31 2013. The impact is everywhere. Passengers of various Batavia Air flights were abandoned.

Ticket counters are empty, as is the office. The government took a stand. They tried to invite airlines to solve the problem of Batavia Air passengers.

"We have asked for a contingency plan or an emergency plan for passengers who will fly Thursday morning. We have summoned Batavia and invited several airlines to work together to coordinate overcoming Batavia Air passengers".

"Especially those who will fly on January 31, 2013. I have contacted several airlines, if there is a seat for the same route, it will be accommodated at the lowest price," said Director General of Air Transportation of the Ministry of Transportation Herry Bakti at his office quoted on the Dephub website, January 30, 2013.