Pertamina resumes supplying aviation fuel to Merpati

State oil and gas company PT Pertamina has resumed supplying aviation fuel to state owned airline PT Merpati Nusantara Airlines after receiving assurance that Merpati will settle its debts.

The aviation fuel was delivered to Surabaya?s airport Juanda and Hasanuddin Airport in Makassar.

Pertamina VP for communication Mochamad Harun said Merpati has agreed to settle its debts.

The first portion of Merpati's debt worth Rp8.2 billion and US$121,000 will have to be paid at the latest on October 21, 2011.

The second portion of Merpati?s debt worth Rp212 billion will be repaid within seven years, while the other portion worth Rp44 billion and US$700,000 will be repaid within two years.

He said for the next aviation fuel order, Merpati is required to pay on cash basis.

PT Merpati Nusantara Airlines was threatened to cease operation after Pertamina stopped supplying aviation fuel to the airline since Saturday. As a result, about 80 percent of the airline?s flights were disrupted.

Coordinating Minister for the Economy, Hatta Radjasa, said the government needs to maintain the existence of Merpati. He said Merpati will receive bridging funds worth Rp561 billion to repay its aviation fuel debt to Pertamina. (giok)