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attitudetravel
Joined: 15 Nov 2007
Posts: 175
Location: London, UK
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 Posted: Fri Mar 21, 2008 5:45 pm Post subject: The demise of Adam Air |
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Monday, 10th March could turn out to be the beginning of the end for Indonesian budget carrier Adam Air after one of the airline's pilots overshot Batam island runway in Indonesia. Five of the 170 passengers on board the Boeing 737-400 were injured.
Adam Air had been struggling to improve its reputation since January 1st, 2007 when 102 passengers and crew lost their lives after Adam Air Flight 574 crashed into the sea close to Sulawesi Island.
Indonesian Transport Minister Jusman Syafii Djamal indicated on Tuesday, 11th March that the airline would be suspended in June if it did not show a marked improvement in safety standards.
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Alan Lansdowne
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Last edited by attitudetravel on Fri Mar 21, 2008 7:02 pm; edited 2 times in total |
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attitudetravel
Joined: 15 Nov 2007
Posts: 175
Location: London, UK
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| Posted: Fri Mar 21, 2008 6:04 pm Post subject: |
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Then, on Monday 17th March, two of Adam Air's largest shareholders - Global Transport Service (GTS) and Bright Star Perkasa - confirmed that they were pulling out of the company, after concerns over financial mismanagement.
When questioned by Deutsche Presse-Agentur Adam Air founder Adam Suherman explained that the airline had already defaulted on debt payments to airplane leasing companies, forcing the company to ground more than half of its 22 planes.
This in turn had already forced Adam Air to slash the number of routes it operated from 52 to 12.
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Alan Lansdowne
Editor, attitudetravel.com
Last edited by attitudetravel on Fri Mar 21, 2008 6:10 pm; edited 1 time in total |
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attitudetravel
Joined: 15 Nov 2007
Posts: 175
Location: London, UK
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| Posted: Fri Mar 21, 2008 6:11 pm Post subject: |
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At 00:00 on Wednesday 19th March, the Indonesian Transport Ministry temporarily revoked Adam Air's aviation licence.
The Ministry took the decision after reviewing a quarterly safety evaluation and concluding that Adam Air is not currently fit to fly planes within the requisite safety standards.
Alarmingly, Indonesia's director general for air transportation, Budhi Mulyawan Suyitno, explained that his department's investigation into last week's accident revealed that "the pilot had no idea what to do in an emergency situation."
Adam Air is now grounded for three months.
If the airline fails to show improvements in safety standards by June, the airline's licence will be confiscated permanently.
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Alan Lansdowne
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attitudetravel
Joined: 15 Nov 2007
Posts: 175
Location: London, UK
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| Posted: Fri Mar 21, 2008 6:15 pm Post subject: |
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It's not a happy story, is it?
What are the odds that Adam Air will start flying again in June?
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Alan Lansdowne
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onebir
Joined: 17 Nov 2007
Posts: 33
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| Posted: Sat Mar 22, 2008 8:01 am Post subject: |
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| Quote: | | It's not a happy story, is it? |
I think (what I hope is) the closure of Adam Air is the happiest part so far. It sends a signal to the industry that safety matters*, removes competition that was unfair because costs were reduced by cutting corners on safety, and perhaps releases some resources (staff, fleet) to other safer operators.
*albeit perhaps a weak one, given the way the Indonesian regulators seem to have hung fire until another near miss meant they really had no choice in the matter |
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