Hard landing for Adam Air

It's a blessing in disguise for Texas Pacific Group that the family who owns Adam Air rejected the US-based investment firm's offer to purchase some shares late last year. I heard the family rejected the offer after a US investment bank advised the family to sell the shares through initial public offering (IPO) instead.

After the tragic Adam Air flight 574 that killed about 100 people, today the airline's flight KI 172 slipped at Juanda Airport, Surabaya. On board were 148 passengers. Lucky that the hard landing didn't cause serious physical injuries, even though we can't discount the mental stress.
While there is no definitive explanation on the incident, Adam Air lightly explain that the aircraft isn't broken apart, only shrinked.
Government responded the incident with immediate call to suspend the operation of all Adam Air's Boeing 737-300 (seven units). Some even urge governmen to permanently revoke Adam Air's license.
I'm not sure whether the family would move ahead with the planned IPO this year. Shortly after the 574 accident, Adam Air firmly stated its intention to proceed with the IPO in Jakarta and Singapore stock exchanges to float up to 20% shares to finance 10 new aircrafts.

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Sense of urgency

JSX composite index closed with 55% growth last year and could easily pass the 2,000 point. But nothing special. Russian stock market grew higher at 67%, Shanghai almost 100%. So, I don't see the urgency of President SBY's visit to JSX today to officially open the 2007 trading activity. All we need is investment in the real sector that creates more jobs. Besides, we have lots of problems lately with safety of our public transportation services that deserved serious attention from the president.

The crash of Adam Air in West Sulawesi that killed more than 90 people has raised concern about the safety issue. On September 5, 2005, a Mandala Airlines’ Boeing 737-200 crashed just after take-off into a crowded residential neighbourhood of the north Sumatran port city of Medan, Indonesia’s third largest city. At least 102 crew and passengers were killed, as well as 47 local residents.
Indonesia's worst was in September 1997, when a Garuda Airbus A-300B4 crashed in a mountainous area near Medan, killing all 222 passengers and 12 crew.
What's shocking this time is the sequence of disasters. Just hours before Adam Air crashed, several ships sinked in various areas with hundreds of people missing. Some blamed bad weather, but others pointed to gross neglience of passenger's safety with overloaded cargoes.

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Tragedies

I can't help but wonder why we have to start writing the 2007 chapter with tragedies & misseries. Detik.com reported Adam Air flight from Surabaya to Manado, North Sulawesi is out of radar screen for almost six hours now with 102 people onboard missing only hours after a ship sinking with 400 people on board. I rejects to believe the soothsayer's gloomy 2007 prediction or President SBY's bad aura & let's pray for their survival!

Detik.com reported Tuesday morning that Adam Air crashed in mountain area of Polman, West Sulawesi. Thank God, 12 passengers survived, but no information available on the remaining 90 passengers on board the Boeing 737-400.
Associated Press reported few minutes ago that rescue teams found the smoldering wreckage of an Indonesian jetliner that went missing over Indonesia's Sulawesi island during a storm, authorities said. At least 90 of the 102 people on board were killed, a local official said.
"The plane is destroyed and many bodies are around there," said local police Chief Col. Genot Hariyanto, AP reported.

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Texas Pacific drops plan to acquire Adam Air

US-based Texas Pacific Group has cancelled the plan to acquire Indonesian airline Adam Air because Suherman Family, the controlling shareholder, rejected to sell majority shares.

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Who's acquiring Adam Air?

Texas Pacific Group Ventures is reportedly acquiring minority shares of Adam Air.

Australian Qantas was previously reported to acquire 20% share of Adam Air from Suherman Family.
Read my previous post on Adam Air at: Qantas to aquire 20% of Adam Air.

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M&A: Qantas to acquire 20% of Adam Air

Indonesia's regional airline Adam Air, owned by Suherman Family, is considering selling about 20 percent of its shares to Australia's Qantas in a bid to create mutual benefits for both airlines, newspapers reported today.

PT Adam SkyConnection Airlines, an Indonesian budget carrier, aims to double its fleet as it plans to fly to international destinations such as Singapore and Australia. Adam Air is owned by Gunawan Suherman Family, Agung Laksono (House of Representative Speaker), and Mrs Sandra Ang.

Adam is run by the family with Gunawan as CEO, Adam Aditya Suherman (24 years old) as president director, and Yundhi Suherman as Chief Commercial Officer with two professionals with experience in Garuda Indonesia, the country's flag carrier. Dave Laksono (son of Agung Laksono, also a Golkar Party executive) is the vice president director of Adam.

The carrier currently has 19 Boeing 737 in its fleet and plans to add eight more aircraft this year.

Adam intends to seek a listing in Singapore sometime in 2007 or 2008 after making the city-state a second hub for its operations

The plans are ambitious but Adam Air, which started commercial flights in December 2003, has shown that it's capable. While budget airlines, which are closest in style too Adam Air's business model, take around three years to just break-even, Adam claimed it has turned in a profit in its first year.

Adam Aditya once said that he was inspired by US low-cost carrier South West while he stay in Santa Monica, California.

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