Indonesia grounds planes belonging to budget carrier Adam Air

Anna Chan:
Indonesian budget carrier Adam Air has had its flights grounded over safety concerns. The airline has suffered a series of accidents and defaulted on debt payments. Here's the full story.

Indonesia's Director General of Air Transport has found evidence of potential danger on Adam Air jets. The company's operations have been halted since midnight on Tuesday.

The decision has left Adam Air's passengers stranded at airports.

[Passenger, Adam Air]:
"We will go to the headquarters together to ask for refunds of our tickets."

Adam Air has three months to fix its problems. If they don't their Air Operation Certificate will be revoked.

[Herry Bakty, Indonesian Transportation Ministry]:
"It is not true that Adam Air was closed or not operated. We already have a guarantee from Adam Air management that all passengers will transfer with other airlines, and Adam Air will give refunds for their tickets."

Airline president Adam Suherman says his company needed cash fast to pay insurance payments due this week. If they weren't paid the planes would have to stop flying temporarily.

In January 2007, an Adam Air plane crashed into the sea off Sulawesi Island, with all 102 people on board presumed dead.

Indonesia has suffered a string of airline disasters in recent years. Concerns about safety standards prompted the European Union to ban all Indonesian airlines from its airspace.

Category:

Autos & Vehicles

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