In Reply to: API Re-Launch Includes Plans to Fly posted by sueand kids on Monday, 5. February 2007 at 15:50 Bali Time:
is what it looks like to me right now.
Seriously, how could Bali Government invest Rp. 150 Billion in "Air Paradise Revisited", particularly if 33% remains in the hands of "Pak Kadek" considering the track record of "API 1" under his leadership/guidance?
Nobody appreciates more than I the impact which "API 1" had on Bali's tourism. Yes, "Bomb 2" seriously impacted on the Airline with immediate loss of new bookings together with the cancellation factor. I also apprciate that the Airline had no recourse but to follow in the footsteps of Qantas and Garuda who offered a "penalty-free cancellation period" for those who determined to not travel to Bali. In hindsight, I feel that it would have been much better for all concerned if what was offered was to give ticketed passengers the opportunity to defer travel for a period of 12 Months with no additional charges (except perhaps Seasonal Surcharges). Still, what's done IS done!
What DOES concern me most is just how quickly funds simply "ran-out" once tickets were presented for refund to Air Paradise International. It makes me wonder what, exactly, had happened to any profits which may have been generated since the Airline's inception and why there wasn't some form of "trust fund" in place for tickets for which payment had been received and travel had not commenced. This would have been simply "good business practice".
Air Paradise was an excellent "marketer" and had organised "Bali Expo's" - first year in Perth and second year in both Perth and Adelaide. In 2005 they had planned similar Expos in Brisbane and Melbourne (Public) and Sydney (Trade). Based on the success of previous years, it is my feeling that API Management were banking on the immediate Cash-flow which would be generated from these to provide operational capital to carry them through. I was involved in the Adelaide 2004 Expo and, in the "window of opportunity" (from memory around 15 days) that people had to avail themselves of the "Expo Special Advance-Purchase Fare", my Agency sold in excess of AU$350,000 in API Package Bookings through Wholesalers.
Regardles of who holds the controlling interest in a "Re-Invented Air Paradise", I can not believe that the airline will be welcomed back by the Australian Market without some adeqate Compensation Package being offered to Wholesalers, Retail Agents and General Public who lost well into Millions of Dollars through the original collapse. This will become even more significant once it is realised that "Pak Kadek" will hold such a major stake in the "new API". Obviously, if they are asking the Bali Government to contribute Rp 150 Billion, then it would appear that "Pak Kadek" will be contributing some Rp 50 Billion of his own/company funds towards his share.
The question which will inevitably be asked by those whose fingers - and bank accounts - had been burned by the collapse of "AP1", is if "Pak Kadek" can come-up with this amount now towards a "new" API, then why were there NO funds available for compensation at the time of the initial termation of flights?
The fact that "Pak Kadek" is continuing to open new entertainment venues in Bali is a particularly "sore point" with many businesses and passengers "on the ground" in Bali who, like their Australian counterparts lost-out heavily.
These are my personal observations and, as I am now residing in North Sulawesi where I am General Manager of a Boutique Dive Resort, I have no vested interests in this matter - nor will I be in a position to have dealings with an "Air Paradise Phoenix"...hey "Phoenix Airlines" may be a great new name!!!(although I would like to get my hands of the amount in excess of AU$50,000 which was "drained" from my Agency's Bank Account by Credit Card Providors as "client refunds" even though we had provided proof that monies which had been received in payment for tickets had been forwarded to API through respective Wholesalers. In some cases, we had given clients full documentation incuding the Air Tickets up to 6 months prior to the collapse!!