MANDALA AIRLINES will focus on international routes

This year, Mandala Airlines will give priority to the opening of the international route rather than opening domestic routes. Currently, Mandala Airlines has been serving local route from Jakarta to Medan and international route Medan – Singapore. On Friday (4/5), Mandala open a new route from Jakarta to Kuala Lumpur.

Commissioner of Mandala Airlines, Diono Nurjadin, revealing the opening of new international routes will take priority rather than the opening of domestic routes. This decision is due to competition on international routes for airlines low cost carrier is not too tight as well as in domestic flights. "If domestic is already congested, especially our competitors already have a number of planes a lot, while we had three planes," said Diono.

Another reason why more focus on opening the international routes duet to ticket sales promotion of Mandala Airlines is easier because have a partner with Tiger Airways as one of the shareholders of Mandala Airlines. Diono said with this synergy it is easier to do promotions in overseas passengers since Tiger Airways has been known in Asia. "So we will also use Tiger Airways to link the promotion of Mandala Airlines," he added.

With this strategy, is optimistic his side can continue to increase the number of Mandala Airlines passengers on two international routes and one domestic route. "So with theses three routes, the passenger occupancy target is 80% to 84%," he said.

Regarding the new route from Jakarta to Kuala Lumpur is open from Friday, Mandala Airlines will serve with a frequency of 14 flights per week. Expansion about the opening of new routes, Diono explained, that Mandala Airlines will open up international routes provided that the distance of not less than four to five hours. For example, to Hong Kong or India. This year Mandala Airlines will bring 7 new Airbus A320 aircraft. While currently only three aircraft that have been operated.

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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.

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Saratoga Group took over the Mandala Airline stocks by 51 per cent

Finally, Saratoga Group took over the Mandala Airline stocks by 51 per cent, followed by Singapore airlines, Tiger Airways, by 33 percent, and the remaining 16 percent by the old shareholders and its creditors.

The agreement was conveyed Head of Corporate Communication, Mandala Air Nurmaria Sarosa, Thursday (5/19/2011) in Jakarta. "God willing, Mandala will flight June or July 2011, "said Nurmaria. The agreement was signed in Singapore on Thursday afternoon.

Saratoga Group, an investment holding company founded by  Edwin Soeryadjaya and Sandiaga Uno.

Tiger Airways is an airline which is majority owned by Singapore Airlines. Tiger Airways now flies 24 Airbus A320 aircraft. "Cardig and Indigo stocks was diluted in 16 percent of the shares are shared with other creditors," said Nurmaria.

Singapore media proclaim, Mandala Airlines will take the business model of low-cost airlines, like Tiger Airways, and still will operate the Airbus A320 with operational centers in Indonesia.

PT Mandala Airlines was established 17 April 1969 and was initially a part of the body of the Indonesian military. In April 2006, Indonesian transport group, Cardig International, acquired an airline with value at IDR 300 billion (34 million U.S. dollars). In October 2006, Indigo Partners, an investment firm, acquired 49 percent Cardig’s stake.

Mandala Airlines stops operations because of financial difficulties since January 13, 2011 and since April 1, had to lay off 50 percent of its employees.

Total debt of Mandala Airlines after verified reached IDR 2.45 trillion, which represents the amount owed to unsecured creditors. The amount is derived from about 114 creditors who are companies, 72,000 ticket holders that have been verified, and 350 travel agents. While Mandala’s assets that have beencal culated around IDR 110 billion.

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