Loss-making budget carrier PT Mandala Airlines, which operates under the brand Tigerair Mandala, says it has decided to cease its operations as of July 1 after battling to keep its business alive.
The chairman of Mandala’s board of commissioners, Jusman Syafii Djamal, said in a statement on Wednesday that his firm was no longer able to beat pressure in the country’s competitive aviation industry as well as surging operational costs.
“We have looked at every angle to make this work, and have also discussed with other potential strategic and financial investors. In addition to the overcapacity situation that has put significant pressure on yields, the weakening rupiah, which has depreciated more than 20 percent since the beginning of 2013, has also increased operating costs significantly,” he said.
http://www.thejakartapost.com/news/2014/06/19/mandala-gives-hope-shuts-down-operations