Indonesia AirAsia Will be No More

Indonesia AirAsia airline will end its operation in Indonesia as it will be merged with Indonesia AirAsia X. Suprasetyo, director general for air transportation at the Transportation Ministry, said this merger is to improve Indonesia AirAsia’s financial condition.

According to Suprasetyo, the merger is to save Indonesia AirAsia from having its operating license revoked because by merging with AirAsia X, Indonesia AirAsia’s equity will not be negative. “Indonesia AirAsia X’s equity is not negative because it hasn’t been audited and its operation is still less than a year,” he said on Wednesday.

Therefore, said Suprasetyo, after the merger, there will be no more Indonesia AirAsia. All AirAsia’s operations in Indonesia are under Indonesia AirAsia X that serves medium and long-distance flights. For that, Indonesia AirAsia X will submit new business plans and process route permits again so that they can use Indonesia AirAsia’s routes. “Indonesia AirAsia is no more,” he said.

Indonesia AirAsia is one of 13 airlines that have negative equities, based on the Transportation Ministry’s inspection in July 2015. The ministry threatened to revoke their operating licenses if their equities were not positive until September 30.

Indonesia AirAisa president director Sunu Widiyatmoko gave no answer when asked for confirmation, while PT Indonesia AirAsia X chief executive officer Dendy Kurniawan did not comment much and chose to wait for an official announcement from the ministry.