Batavia Air ceases operations

Indonesian domestic airline Batavia Air ceased flying Thursday after a court ruled in favour of a bankruptcy petition against it, a company spokesman said.

"Following the bankruptcy ruling, we regret to announce that Batavia Air has ceased operations starting Jan 31, 2013," Elly Simanjuntak said.

United States-based International Lease Finance Corporation filed the petition after Batavia failed to pay 4.68 million US dollars for the lease of several Airbus A330s by Dec 13 as agreed.

The Central Jakarta Commercial Court ruled in support of the petition on Wednesday.

Batavia Air, which served 11% of the domestic market, had planned to carry Muslim pilgrims on hajj pilgrimage to Saudi Arabia, but failed to secure the hoped-for contracts.

The ruling came three months after AirAsia Bhd, Asia's largest low-cost airline, aborted an 80-million-dollar deal to buy Batavia Air, citing excessive risk.

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Writer: dpa
Position: News agency