Struggling Merpati grounds all flights

[JAKARTA] Indonesia's PT Merpati Nusantara Airlines has grounded all flights until at least the end of February as the debt-laden state-owned airline struggles to pay for fuel, insurance and salaries, company officials said.

Angry customers were demanding refunds for cancelled flights in Merpati's central Jakarta office yesterday and workers said they have not been paid for three months.

Merpati has reduced its routes to cut costs, but it is straining under a debt of more than 6 trillion rupiah (S$631.3 million).