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(ANTARA) Underfire from public, Lion Air Claims to Have Stable Financial Situation

12/12/2018



Lion Air claimed that its financial condition was stable after losing billions of rupiah and spending an amount of money to compensate delayed flights, Antara News reported.

“There is no problem with Lion Air’s financial condition. If we’re losing billions of rupiah, it’s not a problem because it’s a business risk,” Lion Air director Edward Sirait said in Tangerang on Friday, February 20, 2015.

Edward explained that his company had to borrow Rp4 billion from PT Angkasa Pura II because the company only had Rp1.5 billion of cash on hand. Edward added that the loan was not enough to compensate the ticket refund. Therefore, the loan had to be made and will be repaid after the problem is settled.

PT Angkasa Pura II director Budi Karya Samadi said that his company and Lion Air made an agreement to bail the ticket refund and will be repaid by Lion Air.

There was a time when Lion Air was feted by the government, when it splashed out $22 billion on aircraft from Boeing, followed just three months later by a $24 billion deal with Airbus. $46 billion total.