Grounded Indonesian carrier Riau Airlines has undergone a top-level management change in an effort to appease its employees but it has sparked a problem with one of the carrier’s creditors.
Riau Airlines managing director Heru Naurhayadi says he has resigned and the shareholders met yesterday and installed Asparaini Rasyad as the new boss.
Asparaini was already one of Riau Airlines’ commissioners and has been appointed to the top post for an interim period of two months until a permanent managing director can be appointed, adds Heru.
Heru says he resigned because “of an internal problem with the employees”.
“The employees feel I am arrogant. I only deal with several people only” so some “have come to the conclusion I am arrogant”, says Heru, who denies that he is arrogant.
Heru says the employee dissatisfaction is unwarranted because in the four years and four months since he has been managing director the carrier has grown in size and become profitable.
Airline employees receive a bonus each year, salaries are paid on time and the company pays employee medical expenses and provides a pension programme, he says.
He also says last year the bonus was 120% of salary because the airline’s profits rose to 9 billion rupiah ($990,000) from 3.3 billion rupiah.
The change in management has sparked a problem with one of the airline’s creditors, Bank Muamalat Indonesia, which is demanding that the airline repay a loan.
Heru confirms this and says there is a clause - in the airline’s contract with the bank - that says if there is a management change the loan has to be paid in full straight away.
An Antara news report quotes Asparaini as saying he is working to solve this problem and the airline is unable to immediately pay the 60 billion rupiah owed to the bank.
Heru says as far as he knows the amount owing is more than 60 billion rupiah because the airline recently got additional financing.
Riau Airlines on 21 August it is due to take delivery of two BAE Systems Avro RJ100s on lease from the manufacturer. Heru says the airline plans to follow through with this deal despite its recent setbacks.
He says the airline has already signed a contract with BAE Systems and if the airline reneged it would lose money because BAE Systems would try to recoup the $1.7 million already spent on aircraft refurbishment.
Riau Airlines also operates five Fokker 50s, three that it owns and two on lease.
Since late last month the airline has been completely grounded because Indonesia’s Directorate General of Civil Aviation is unwilling to let it operate until it recruits suitable candidates to fill the posts of manager of operations and chief pilot.
Riau Airlines’ chief pilot and manager of operations recently resigned and left the company.
Source: Air Transport Intelligence news
Source: Flight International
