Lion Air Suffers Billions of Losses Due to Raung Eruption

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    TEMPO.CO, Tangerang - Daniel Putut, Director of Airport Operation and Service at Lion Air, said that his company has suffered a total loss of Rp 8 billion (US$615,384) for cancelling flights as a result of Mount Raung eruption in Bondowoso, East Java.

    "Some 200 flights had been canceled between July 10 and July 22," Daniel told Tempo at the Soekarno-Hatta Airport on Thursday, July 23, 2015.

    Daniel said that at least 40,000 passengers had to cancel their trips, resulting in massive refunds of tickets and accommodation costs, as well as compensations for delayed and cancelled flights.

    According to Daniel, the airline had prepared Rp 5 billion (US$384,600) at five closed airports to refund the tickets.

    The Transportation Ministry had ordered closures on five airports affected by the eruption, namely the International Ngurah Rai Airport in Bali, Lombok International Airport, Selaparang Airport in Lombok, Blimbingsari Airport in Banyuwangi and Notohadinegoro Airport in Jember.

    To this date, Mount Raung continues to display unstable volcanic activities. On Wednesday, July 22, 2015, the mount threw volcanic ash reaching up two kilometers and caused small tremors, resulting in temporary closing of the Ngurah Rai International Airport in Bali.

    JONIANSYAH