Business | Aviation
Adam Air faces shut down
Low-cost carrier Adam Air is facing possible closure after two of its largest shareholders announced plans to pull out of the beleaguered Indonesian company.
- Agencies
- Published: 11:48 March 17, 2008
Jakarta: Low-cost carrier Adam Air is facing possible closure after two of its largest shareholders announced plans to pull out of the beleaguered Indonesian company.
Global Transport Service and Bright Star Perkasa – which together control a 50 percent stake in Adam Air – said they decided to sell their shares back to the owner because they were dissatisfied with the way the company was being run.
Transportation Minister Jusman Djamal said Monday the airline has three weeks to prove it is economically viable.
If it fails to do so, the government will revoke its operating license.
Adam Air jetliners have experienced a number of incidents, most of them non-fatal.
In 2007, an Adam Air place plunged into the sea of Sulawesi island, with all 102 passengers on board presumed dead.
More from Aviation
More from Business
Business Editor's choice
-
‘Wrong Way' Krugman
The source of our economic malfunction lies with government-mandated bank regulations
-
Greek exit could make Eurozone stronger
Departure will show limits of bailouts and allow remaining members to act much more like a unit
-
UAE upholds values of free trade
Recently released statistics confirm an established fact, namely that of the UAE embracing the free trade principle in general and imports in particular
