Gloomy future for Adam Air as investor retreats

JAKARTA Following the latest safety incident involving an Adam Air flight that slid off the runway at Batam’s Hang Nadim Airport on March 10, 2008, the Indonesian Department of Civil Aviation has threatened to “freeze” the airlines Air Operating Certificate if the carrier’s management is unable to quickly correct its safety management shortcomings.

Several passengers suffered injuries in the Batam mishap, but no fatalities were reported. The Minister of Transportation, Jusman Syafii Djamal, told Bisnis Indonesia that if improvements are not made soon, he will lower their safety rating of Adam Air to “category III” - the lowest safety rating which could lead to a closure of the airline.

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Indonesia threatens to close Adam Air in three weeks

JAKARTA Indonesia threatened Monday to close low-cost carrier Adam Air after two of its largest shareholders announced plans to pull out of the beleaguered company. The airline has defaulted on debt payments to airplane leasing companies, which has forced the company to ground 12 of its 22 planes, said Adam Suherman, whose family together with Sandra Ang owns a 50 percent stake.

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