Indonesia’s 6th biggest domestic airline grounded; Mandala Airlines has 45 days to find new investors to keep flying

At the time of Mandala Airlines’ grounding, five other Indonesian domestic airlines were bigger. The airline now has 45 days to restructure before it again can fight its larger competitors.

At the time of Mandala Airlines’ grounding, five other Indonesian domestic airlines were bigger. The airline now has 45 days to restructure before it again can fight its larger competitors.

Indonesia’s Mandala Airlines has been granted a 45-day reprieve to try and restructure and find a new investor after it was grounded last week for non-payment of debts. The low-cost carrier operated a relatively small fleet of eight Airbus narrow-body aircraft and was operating from 13 airports in Indonesia plus Hong Kong, Macau and Singapore. International services had only begun last summer.

Major shareholder Indigo Partners (nothing to do with IndiGo airlines) also has an interest in several other Airbus-based LCCs; Avianova, Spirit Airlines, Volaris, Tiger Airways and Wizz Air. When contacted by anna.aero, Indigo Partners declined to speculate on how the restructuring of Mandala Airlines might sort itself out and stressed that Indigo’s other investments are unaffected.

Modest 3% share of Indonesian market with 17 routes

According to OAG data for January 2011, Mandala Airlines ranked only sixth among carriers serving the Indonesian domestic market.

Airline Frequency share Capacity share Domestic routes
Lion Air 38.9% 45.5% 92
Garuda Indonesia 20.9% 21.6% 38
Batavia 12.7% 10.7% 55
Sriwijaya Air 9.8% 8.8% 39
Merpati Nusantara 7.4% 5.9% 41
Mandala Airlines 3.0% 3.0% 17
Indonesia AirAsia 1.6% 1.8% 6
Source: OAG Max Online for w/c 10 January 2011

Of Mandala Airlines’ 17 domestic routes, 15 were operated with at least daily frequency. On its busiest route between Jakarta and Jogjakarta, it operated 18 weekly departures. Passengers on this route also have the choice of flying non-stop with Batavia (14 weekly flights), Garuda Indonesia (63 weekly flights), Indonesia AirAsia (14 weekly flights) and Lion Air (56 weekly flights).


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