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Indonesia AirAsia denies bankruptcy rumour

Thursday, 5 August 20103 min read

Indonesia AirAsia management has denied that the low-cost airline is in financial trouble following a decision to close two local routes in October.

“We want to clarify the rumour. We are not bankrupted,” AirAsia spokesman Audrey Progastama said 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.

Aircraft flying these routes will be diverted to Surabaya-Singapore, Surabaya-Bangkok, Surabaya-Kuala Lumpur, Medan-Singapore, Medan-Kuala Lumpur, and Medan-Hongkong/Macau routes, the spokesman said.

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