An excerpt from a thread on another site, makes interesting reading. The article started off with talk from Garuda welcoming Jetstar into the Bali Market and then went on with the Air Paradise story
At the same time, defunct Balinese airline, Air Paradise International, is working to re-establish its product in the Australian market.
The airline's new management board has been meeting with Australia's major wholesalers and retailers to smooth the waters over its 2005 collapse, and to determine how it can recommence operations.
The airline closed its doors late last year owing millions of dollars to Australian travel sellers, airports and the Australian Tax Office, but is trying to re-birth, backed by a massive capital injection, a new management board and an insurance policy to protect wholesalers from financial risk.
The latest round of talks has confirmed the new airline owners are well advanced in their preparations, with previous owner, Kadek Wiranatha, now reduced to a minor shareholding.
The new operation is to be funded by a wealthy Sri Lankan investment team, and it is understood that Indonesian airline approvals have already been secured.
Pending financial settlements, industry endorsement and government approvals, Air Paradise could be flying again as soon as December 2006.
An Australian industry representative said that while the airline's new business model is of great interest to the retail community, Air Paradise would find it difficult to regain the confidence of the Australian industry until it has repaid its outstanding debts.
The management team has been in Australia over recent weeks, with an offer to offset debts in exchange for free airline seats instead of cash payments. This has been met with a resounding 'no' by most agent groups.
It is understood the airline plans to operate its fleet using a similar product offering to its previous operations, but with vastly modified administrative function that will retain all revenue in Australia, until the completion of each flight.
The other important change is a commitment to insure all funds held by the airline - thus fully protecting creditors.
If successful, the airline plans to commence operations from Perth in December, with Melbourne, Sydney and Brisbane being introduced over the following three months.
Debt remains the airlines major stumbling block, with Flight Centre believed to be owed in excess of A$2 million and the Australian Taxation Office also negotiating a hefty settlement.
It's unlikely any outstanding passenger funds will be recovered.
Source: Travel Talk
Gary