Low-cost carrier denies bankruptcy

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4 August 2010

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Indonesia AirAsia management denies that the low-cost airline is near bankruptcy following its plan to close two local routes in October.

AirAsia spokesman Audrey Progastama denied the rumor on Tuesday as quoted by kompas.com. He said Jakarta-Surabaya and Jakarta-Medan routes were closed as the airline began to focus on international routes instead of domestic routes.

Passengers who have bought tickets for the two routes will be reimbursed.

Airplanes from the two routes will serve Surabaya-Singapore, Surabaya-Bangkok, Surabaya-Kuala Lumpur, Medan-Singapore, Medan-Kuala Lumpur, and Medan-Hongkong/Maca routes, Audrey said.

He claimed that the Indonesia AirAsia load factor in the second quarter of 2010 reached 75 percent, a 9.8 percent increase from the same period last year.

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