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.

In reviewing the latest mishap of Adam Air the Minister directed his safety inspectors to focus on the pilot’s role in the bad landing who reportedly landed his aircraft with less than 1,000 meters of visibility. Adam Air currently operates a fleet of 23 aircraft composed entirely of Boeing 737 aircraft.

Bhakti’s decision to cease financial support to Adam Air may also be connected with recent announcements by the investment bank to create a new full-service airline Eagle Air operating 25 planes on regional and Asian routes. Bhakti Investment is a large investment bank with substantial interests in the Indonesian media.