Mandala Airlines to be shut down on July 1, Tigerair pulls the funding

Tigerair Group (Singapore), which controls 35.8 percent of the Mandala Airlines (Tigerair Mandala) stock, has decided to stop funding the loss-making Indonesian carrier. The company issued this statement:

PT Mandala Airlines deeply regrets to inform customers that its airline (operating under the brand-name of  Tigerair Mandala) will cease operations from July 1, 2014.

Customers who hold a flight booking with flight designator “RI” should note the following:

All Mandala flights from now to June 30, 2014 will operate as scheduled.

The last flight to be operated will be RI 545 on July 1, 2014, HKG-DPS departure time 0235.

All other flights operated by Mandala on July 1, 2014 and thereafter will be cancelled.

As a gesture of goodwill, the Tigerair Group will assist all affected customers with either a flight transfer to a TR flight if seats are available, or a refund for tickets booked for travel on July 1 or thereafter. Tigerair has no legal obligation or responsibility to do so. All legal obligations and responsibilities still rest with Mandala.

The Board and staff of Mandala wish to thank all customers for their support and sincerely apologize for any inconvenience caused.

Mandala Airlines originally started operations in February 1970 and was resurrected on April 5, 2012 under the assistance of Tigerair (Singapore).

Read the full report from Bloomberg Businessweek: CLICK HERE

Copyright Photo: Richard Vandervord/AirlinersGallery.com. Mandala Airlines’ Airbus A320-232 PK-RMP (msn 5073) with the Tigerair tail arrives at Bangkok.

Tigerair Mandala: AG Slide Show

Tigerair (Singapore): AG Slide Show

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