Indonesia’s Super Air Jet gets Lion Air funds – report

Lion Air Group appears to have injected a total of IDR968 billion rupiah (USD67.5 million) into both Indonesian low-cost start-up Super Air Jet (IU) and Flyindo Aviasi Nusantara, a new charter-flight service, sources have told the financial news site Debtwire. The two new businesses are controlled by the family of Rusdi Kirana, owner of Lion Air Group. The transactions occurred on February 2, at a time when Lion Air Group’s debt-restructuring talks were faltering, hinting that the Kirana family may have been considering walking away from the distressed carrier in favour of the newer businesses, one of the sources claimed. IDR518 billion (USD36.1 million) went to Super Air Jet from the group’s account at Bank Negara Indonesia and IDR450 billion (USD31.4 million) went to Flyindo, Debtwire reported citing bank records. It was in early February that the group was reported to have reached agreement with a number of its lessors to restructure their contracts after months of negotiations, though most were still under discussion. Subsidiaries Lion Air, Batik Air, Malaysia’s Malindo Air, Thai Lion Air, and Wings Air (Indonesia) lease aircraft from a total of 50 lessors, according to the ch-aviation fleets advanced module. Among these are Avolon, CDB Aviation, and ICBC Financial Leasing, and sources told Debtwire that these three companies had leased or were in discussions to lease some of up to 30 new aircraft to Super Air Jet, possibly betting that the start-up could pull ahead in the market. A spokesman told local media on May 3 that Super Air Jet, an LCC targeting Indonesian millennials, had already received a business licence and was in the process of obtaining an Air Operator’s Certificate (AOC). Flyindo Aviasi Nusantara is also believed to have applied for an AOC, the sources said. Super Air Jet is reportedly owned by Farian and Davin Kirana, the sons of brothers and Lion Air Group founders Kusnan and Rusdi Kirana. Farian and Davin own the new carrier through Kabin Kita Top, a company in which they each hold a 50% stake, Debtwire reported citing data from Indonesia’s Ministry of Law and Human Rights. Kabin Kita Top holds 99.8% of Super Jet. Farian Kirana also owns 50% of Flyindo Aviasi Nusantara, with Denis Firian, another son of Rusdi Kirana, holding the other half, according to Debtwire. Lion Air, Avolon, CDB Aviation, and ICBC Leasing did not respond to requests for comment.