Friday, October 7, 2011

MANDALA Airlines to operate before the end of this year

PT Mandala Airlines will resume operations before the end of this year's holiday. Funds needed for this plan to reach U.S. $ 250 million, which is to purchase five new aircraft and also rent  five planes.

"We are still identifying the plane. As soon as the existing permission from the government, we follow up. Fly before year-end holidays, so there is a solution offerings," said owner of Saratoga Group, Sandiaga Uno in Jakarta.

The fund has been prepared by Saratoga Group and Tiger Airways are both sourced from internal cash.

Sandiaga Uno said, the Airbus 737 will be the choice to fly back Mandala Airlines. "For the new Airbus 737 around U.S. $ 50 - U.S. $ 70 million. There is a lease as well," he added. As an initial step, the Mandala Airlines will fly the aircraft for the distance in under three hours with domestic and international routes.

For the record, Saratoga Group has a 55% stake in PT Mandala Airlines. Conditional sale and purchase agreement and other legal documents have been signed by Mandala Airlines, Saratoga Group as a financial investor, and Tiger Airways as the strategic investor.

After changing ownership, the Mandala Airlines is expected to implement the business model of Tiger Airways, offering low cost travel to international destinations and domestic.