Private carrier Batavia Air announced that it would cease operations beginning at 12 a.m. on Thursday after a Jakarta court ruled in favor of a bankruptcy petition filed against the airline on Wednesday.
“Starting tonight at 12:00 a.m. midnight, all operational activities of Batavia Air will cease,” Batavia’s lawyer Raden Catur said after a hearing at the Central Jakarta Commercial Court.
The bankruptcy petition was filed by the International Lease Finance Corporation, an aircraft leasing company headquartered in the United States, and concerned a $4.68 million debt.
Batavia reportedly failed to pay leasing fees for an Airbus A330 fleet it leased from the US firm at the agreed upon deadline on Dec. 13, 2012. The airline was planning to use the fleet to serve Indonesian hajj pilgrims, but failed to win a bid for that.
“[We] decide to grant the petition, entirely,” chief judge Agus Iskandar told the Wednesday hearing, as reported by Indonesian news portal detik.com.
Catur said Batavia had seven days to decide whether to appeal the verdict and had yet to make any decision on the matter.