Mandala Cease Operations

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            After one year dan two months Mandala resuming operations under the Tigerair Mandala brand,  has to cease again its operation July 1, 2014. This time the cause namely of  rising operating costs and  the weakening of the Indonesian rupiah currency. Another factors contributing to the closure, poor routes choices and offering very cheap tickets in the tough Indonesian market.

 

            Earlier, indication of Tigerair Mandala downfall was seen in February this year when suspending its nine routes which made up about 40 percent of the carrier’s network, including the Jakarta-Singapore, Jakarta-Kuala Lumpur, Jakarta-Yogjakarta, Jakarta-Hong Kong and Surabaya-Kuala Lumpur routes.

 

            Angkasa noted Mandala after resuming its operations under the Tigerair Mandala brand, Paul Rombeek, president director of the carrier ambitiously said that Mandala could leverage over 50 destinatons across 13 countries of Tiger network in the Asia-Pasific region. 

 

            Tiger Airways Holdings of Singapore, has a stake of 33 percent in Tigerair Mandala confront tough competition from Indonesian leading low cost carrier (LCC) Lion Air and Indonesia AirAsia. Tigerair Mandala could not compete although it has lowered its advance fare to USS10 for the Jakarta-Singapore route, which is much lower than the Java inter-province bus ticket.

 

            Its has also restriction for the carrier popular single-aisle Airbus A320 aircrat flying to the country’s smaller airports, which did not imply to the competitors.

 

            On the closure, Tigerair Mandala chairman board of directors, Jusman Syafii Djamal admitted that after resuming operation last year, Mandala kept losing money. He did not mentioned the amount, but surely a huge amount.

 

            Malaysia’s AirAsia and Garuda Indonesia’s subsidiary Citilink who were its potential investors in acquiring the ailing carrier, back away it plans probably after knowing the amount Tigerair Mandala suffered. (ds)

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