Adam Air's Fall - Eagle Air's Rise

[Mohd Azizul Ramli 2]

Accident prone Indonesian airline, Adam Air is in the midst of bankruptcy after one of the main shareholder in the company decided to pull out from the ailing airline on Friday, 14 March 2007.

 

Still fresh from the runway skidded off incident in Batam, Adam Air made the headlines once again after Bhakti Investama, which holds 50% stake in Adam Air decided to pull out from the company and will set up a new airline called Eagle Air. Adam Air took off the sky in 2003.

 

Observers believed that Bhakti Investama's action was resulted from the ailing conditions of the carrier. From an airline which operates 22 aircrafts, 12 of them have been taken back by their respective lessors, leaving Adam Air with only 10 aircrafts to operate at the moment. The shortage of aircraft caused Adam Air to only managed to operate between 35-40 daily flights as compared to 68 daily flights in full capacity. At the moment Adam Air still manage to hold on to all routes in 21 destinations that it serves although having to cut frequencies. The lessors took back their aircrafts because Adam Air failed to pay the lease.

 

The fate of 3,000 Adam Air's employees are now on the chopping block and the Adam Suherman Family, which own the remaining 50% of Adam Air don't have enough cash to pay the employees' termination compensation (MSS). The revenues which are generated from the 10 remaining aircrafts as well is not enough to cover the company's operation and its cash deficit is balloning.

 

On Bhakti Investama's new project, the company is preparing the necessary works to launch a new airline called Eagle Air, a full service carrier that will rival Garuda Indonesia head's on. According to reports, Eagle Air has ordered 16 B737-800 aircrafts and 25 Bombardier CRJ900 aircrafts with first delivery will take place in the middle of 2008.

 

I find this development interesting to follow and I will compile the necessary newspaper articles for references here in MW.

[Ryan Soh 3]

What a dramatic turn of events!!! I can imagine Sandra fuming in her flaming red blouse and her brown highlighted Tante-inspired hairdo. Gini back-stabbing bangat si!!!! BANGAT!!!!!! Great story for a soapie.

 

I understand that Bahkti Investama became "uncomfortable" with Adam's modus operandi. I wonder what made them feel that way? If the safety issues triggered their pull out, then we can expect a higher standard of operations when Eagle Air takes to the skies.

 

As for Adam's employees, I am sure they will find ready employment in the Eagle's nest although I hope they will use this opportunity to pull out the weeds!

[Naim 6]

Nice livery, but what a pity.

 

===

 

The Age

Australia

 

Indonesian airline loses half its fleet

 

March 17, 2008 - 8:49PM

 

Indonesian budget carrier Adam Air, which has been warned about its safety standards, said a leasing firm seized more than half its fleet after the airline defaulted on its payments.

 

Adam Air, which like all other Indonesian airlines has been banned by the European Union because of safety concerns, was forced to cut back several scheduled flights because it did not have enough aircraft, causing delays for some passengers.

 

"Out of 22 planes, now we only have 10 because 12 of them have been declared in default. The other 10 have been declared in default as well but I'm still trying to work out a way to restructure the payments," Adam Suherman, the airline's president director, said.

 

PT Bhakti Investama Tbk, an investment firm which indirectly owns 50 per cent of Adam Air, will sell its stake in the troubled airline back to Suherman, the founding shareholder, for 100 billion rupiah $US11 million ($A11.74 million), according to Hotman Paris Hutapea, a lawyer acting for Bhakti.

 

In January 2007, an Adam Air plane crashed into the sea off Sulawesi island, with all 102 people on board presumed dead.

 

Bhakti, controlled by businessman Hary Tanoesoedibjo, invested in the airline soon after the disaster, hoping to benefit from a turnaround at the airline.

 

Bhakti has injected as much as 157 billion rupiah in the airline, Hutapea said, since it agreed in April 2007 to buy a 50 per cent stake in the airline.

 

Indonesia's airline industry has grown rapidly in the past decade following liberalisation, with the launch of new players and a wider choice of routes across the sprawling archipelago.

 

However, the world's fourth-most populous country has suffered a string of airline disasters in recent years, raising concerns about safety standards and prompting the European Union to ban all Indonesian airlines from its airspace.

 

While the cause of the Adam Air disaster is still under investigation, the budget airline has faced other safety issues.

 

On March 10, a Boeing 737-400 operated by Adam Air with more than 170 people on board overshot the runway at Batam island airport, causing damage to the plane and injuring five people.

 

Following that incident, state media reported that Indonesia's transport minister had warned Adam Air that it could be forced to halt its operations after a series of accidents involving the carrier.

 

http://news.theage.com.au/indonesian-airli...80317-1zz1.html

[S V Choong 4]

The Age

Australia

 

Great... another 1 is sourcing info. from "The age", incl. me

[Min 6]

too obvious they dont really concerned bout their safety and others.... hmmmm no goood mannnn

[Ivan L. 0]

Actually, Adam Air has halted its operations as of today.

 

Source (in Indonesian): http://www.padangekspres.co.id/content/view/777/1/

[Chan CS 0]

Indonesia announces closure of Adam Air, citing safety concerns

 

JAKARTA, Indonesia (AP) - Indonesia says low-cost carrier Adam Air will no longer be allowed to fly, citing concerns over safety.

 

The carrier has had a string of accidents in the last year.

 

One jetliner plunged into the sea from 10,000 feet (3,000 meters), killing all 102 people on board. Another plane broke in half on a hard landing. And last week, a Boeing 737-400 skidded off a runway, injuring five people and badly damaging the aircraft.

 

Budhi Mulyawan Suyitno, director general for air transportation, said Tuesday the airline was being shut down with little notice because it was found to have ignored safety procedures. Training also was inadequate.-AP

 

Souce: TheStar

[Y. J. Foo 0]

Funny...their site is still accessible...

 

Nothing mentioned about their closure...

 

Although all flights have been marked as "FULL"...

[Mohd Azizul Ramli 2]

The chronological event as reported by Pontianak Post. Adam Air made the headlines everyday since 15 March 2008.

 

15 March 2008, Saturday - Bhakti Tinggalkan Adam Air (Bhakti left Adam Air)

• In the midst of recent runway overhoot incident in BTH, Bhakti Investama which owns 50% of Adam Air decided to pull out from the airline with immediate effect. All fund will be channelled out at once and be transferred to Eagle Air, a new airline which is 100% owned by Bhakti. Adam Air founder, Adam Aditya Suherman accused Bhakti for being selfish and irresponsible for not thinking about the complication of its action towards 3,000 Adam Air employees.
• Bhakti acquired the 50% shareholdings in Adam Air at the time the ailing carrier was facing difficult time when one of its aircraft, flight KI 574 went missing and plunged into the sea near Sulawesi on 1 January 2007. The acquisition transaction completed in April 2007. Bhakti also operate another a charter airline, PT Indonesia Air Transport Tbk. Bhakti has yet to submit official document about its intention to pull out from Adam Air.
• Adam Aditya Suherman is sad by the 'unprofessional' way Bhakti is over the pulling out from the business. At the moment, capital injection to remedy Adam Air's cash deficit couldn't be done without the agreement of both shareholders. One of the Suherman family member accused Bhakti was using Adam Air in acquiring knowledge and experience in handling an airline. Three months after its acquisition of 50% of Adam Air shares, Bhakti submitted an application to the Ministry of Transportation to start Eagle Air. Eagle Air will take off to the sky within 3 months time and the cash channelled out from Adam Air will be transferred to Eagle Air.
• However, Bhakti denied the accusation and told that the main reason for the withdrawal are because Adam Air did not comply with standard safety requirements and that there are no transparency over transactions involving Adam Air's management. Bhakti held a Director and Head of Finance positions in Adam Air and both personnel suggested that Bhakti withdraw from the business because of its ailing management condition. Since Bhakti acquisition of 50% of Adam Air shares, no improvement whatsoever has been initiated regarding safety issues. Bhakti is also doubtful over Adam Air's corporate governance practices as there is no transparency in the company's transactions.
• Ministry of Transportation, Jusman Syafii Djamal told that the Ministry has no right to intervene in the withdrawal of Bhakti Investama from Adam Air because that is Adam Air's internal affairs. The Ministry can only intervene in safety issues.

16 March 2008, Sunday - Karyawan Adam Air Terancam di PHK (Adam Air's employees will be terminated from service)

• The dissagreement between Bhakti Ivestama and the Suherman family got worsen. Adam Air's founder, Adam Aditya Suherman ordered Bhakti to bear the cost of employees compensation should the company closed. He mentioned that he will try his best to sustain the airline's existence although internal conditions of the airlines is getting worse.
• 12 of Adam Air's 22 aircrafts have been taken back by its respective lessors because Adam Air failed to make the lease payment. Adam Air only have 10 aircrafts to operate at the moment. In view of this, from 68 daily flights, Adam Air only can serve 35-40 daily flights only. However, despite the frequency deduction, none of the airline's destinations are axed. The 10 aircrafts remaining are also waiting to be taken back because Adam Air failed to make the lease payment.
• Adam Aditya Suherman is dissappointed with Bhakti for being selfish and don't care about the fate of 3,000 Adam Air's employees. He wants Bhakti to pay half of the compensation to the employees. He described Bhakti, in a way, as an unresponsible husband who left the wife (the Suherman family) and the children (Adam Air's employees) without giving anything. He claimed that Bhakti still has yet to perform some of its obligation as shareholders in the company. Earlier, he thought Bhakti will help prosper the airline he founded. "Saya nggak ngira jadinya seperti ini. Susah payah saya bangunkan Adam Air malah dihancurkan lagi!" (I never thought it will end up like this. All my hardworks in starting this airline are now shattered!).
• Adam Aditya Suherman believed that based on the current situation, Adam Air is now counting days for its closure. This is because the revenues generated by the remaining 10 aircrafts are not enough to cover the airlines operating expenses. Cash deficit will ballonning. The Suherman family couldn't do anything including capital injection because Adam Air is a 50-50 business venture. All decisions have to be agreed by both shareholders. Bhakti is expected to channel out all it's fund from Adam Air on Monday, 17 March 2008.
• On another matter, Bhakti is now preparing itself to set up a new premium full service airline that will rival flag carrier, Garuda Indonesia head's on. The new airline, called Eagle Air will take off to the sky in mid 2008 with a fleet of 16 Boeing 737-800 and 25 Bombardier CRJ900 aircrafts.

17 March 2008, Monday - Tak Percaya Rumor (Not believing in rumours)

• Adam Air's employees are shocked and extremely sad with the recent event, where Bhakti Investama, which owns 50% of the airline decided to pull out from the company. However, all of them will still stand firm behind Adam Air. A stewardess mentioned that she couldn't believe that Adam Air will be closed. Her colleague, in disbelieve, went to the Sultan Hotel just to witness the press statement made by Adam Air's founder Adam Aditya Suherman about the airline's sudden closure.
• Things happened so fast without any indications. They mentioned that Adam Air is a good employer and always pay their salaries and allowances on time. Since the very controverial aircrash incident in Sulawesi (flight KI 574), Adam Air has initiated a lot of improvements in the airline's overall operation. Cabin crews had to undergone additional trainings too.
• At the moment, the majority of the employees will keep a close eye on the company's development because they are praying a new investor will take over the 50% shares currently held by Bhakti Investama. Until it is certain that Adam Air is closed, then they'll move on.
• Until today, Adam Air still serves the sky although with only 11 daily flights from 70 daily flights previously.

17 March 2008, Monday - Investor Timteng Siap Selamatkan Adam Air (Middle East investor will rescue Adam Air)

• An investor from the Middle East, Al Ijarah Group is willing to take over the 50% shares in Adam Air from Bhakti Investama. Al Ijarah sees the potential in Adam Air and willing to commit in either debt financing or capital financing for the shares. However, it will conduct a thorough checking on Adam Air before making any futher decision. Al Ijarah Group has invested in PT Indonesian Air Transport Tbk (investment valued at USD 31 million - MYR 100 million) and Trigana Air with investment valued at IDR 150 billion (MYR 60 million).
• Until now, Bhakti Investama has yet to submit any legal document to the Suherman family about their withdrawal from the company. Bhakti acquired 50% of Adam Air shares a year ago during the time Adam Air was involved in the very controversial aircrash, the missing flight KI 574 which plunged into the sea near Sulawesi on 1 January 2007. Bhakti is now busy conducting internal discussion on their business decision over Adam Air.
• At the moment, Adam Air cannot do anything because of the 50-50 shares structure, all decisions have to be made by the 2 parties. The airline's condition is worsening as it only has 10 aircrafts to operate and 3,000 employees to pay. Adam Aditya Suherman is hoping for the media giant, Jawa Post Group to come to his company's rescue. He only want the Jawa Post Group to be the airline's new business partner.
• In CGK, the airport spokeperson mentioned that Adam Air only has 17 daily departures from the airport, from 43 daily departures before the incident. Adam Air will channeled passengers on its cancelled flights into Lion Air flights.
• On the other hand, Bhakti has invested USD 1.83 billion (MYR 6 billion) to set up a new airline called Eagle Air. The new airline has ordered 16 Boeing 737-800 aircrafts and 25 Bombardier CRJ900 aircrafts for its operation. Eagle Air will take off to the sky in 2008 and they already have a batch of 100 pilots to work with them. Bhakti is working closely with the Badan Diklat Pelatihan Ministry of Transportation for pilots' training.

18 March 2008, Tuesday - Adam Air Defisit Rm 83,8 Miliar (Adam Air's deficit amounting to Rp 83.8 billion)

• The Ministry of Transportation will revoke Adam Air's operation certificate from 00:00 21 March 2008. The action was taken against the carrier after it failed to pay its aircrafts' insurance premium, which was resulted from the sudden withdrawal of PT Bhakti Investama which own 50% of Adam Air on 13 March 2008.
• However, the airline's founder, Adam Aditya Suherman explained that the closure will be temporary until payment of its aircrafts are settled. It is prerequisite in Indonesia that all aircrafts are insured before it can be allow to fly. Adam is now waiting for some capital injection from its runaway business partner, PT Bhakti Investama.
• At the same time, PT Bhakti Investama is also making a press statement explaining that their sudden withdrawal from Adam Air is not the cause of the problem. Bhakti insisted that Adam Air was already in bad conditions before they purchased the 50% stake in the airlines. Bhakti revealed that Adam Air has a cash deficit of IDR 83.8 billion (MYR 33.52 million) at the moment. Bhakti aslo accused Adam Air to 'amend' its financial statements in order to secure an IDR 50 billion (MYR 20 million) loan from PT Bank Rakyat Indonesia. Bhakti claimed that they have fulfilled their obligations in settling the full payment of 50% stake in Adam Air with cash payment of IDR 157.5 billion (MYR 63 million) to the Suherman family. Things started to get sour between the 2 parties when the Suherman family decided to purchase back the shares sold to Bhakti Investama at a discount price of only IDR 100 billion (MYR 40 million) on 14 March 2008. The incident caused Bhakti to pull out from the company in an instant.
• CGK's administrator, PT Angkasapura II told that Adam Air owed them IDR 5 billion (MYR 2 million) in administrative charges including parking fees, landing fees, hangar rental and office rental.
• PT Pertamina also revealed that Adam Air owed them IDR 23 billion (MYR 9.2 million) in aircrafts fuel.
• Dirjen Perhubungan Udara Ministry of Transportation will intervened in the dispute between Bhakti and Adam family to help in reconcilation. The Ministry will suspend Adam Air's operation if this situation gets worsen.
• In Pontianak, Adam Air's office at Supadio airport was closed and all flights are cancelled. Adam Air serves CGK-PNK 3 times a day. Since 10 March 2008, Adam Air only operates 1 daily flight to CGK, the other 2 were cancelled.

19 March 2008, Wednesday - Adam Air Dilarang Terbang Hari Ini (Adam Air is banned from flying today)

• Adam Air was directed to close its operation with immediate effect at 00:00 on 19 March 2008 (today) by the Ministry of Transportation (Departemen Perhubungan). Adam Air's operation certification was stripped off and therefore all its aircrafts will be grounded. The Ministry's decision is based on the audit findings of the airline in the past 3 months. At the moment, Adam Air only has its aircraft operator certificate (AOC) which is also subject to be stripped off is no improvement done by the airline in the next 3 months. Adam Air is now subjected to make improvements in its operation and also have to report it directly to the Ministry before the operation certificate can be reissued back to them.
• On the Ministry's action, the spokeperson mentioned that there are 3 phases of actions towards Adam Air:

  1. The operation is grounded and all aircrafts are banned from flying. This has been imposed towards Adam Air beginning 00:00 on 19 March 2008.

  2. Within 3 months, if there is no improvement in the company's overall operation, including its shareholding issues, the airline's AOC will be revoked. When that happened, we can consider Adam Air as no more in existence.

  3. Within 6 months after the AOC being revoked, if there is still no improvement in the company's overall operation, the holding company's incorporation certificate (Surat Izin Usaha Perusahaan) will be revoked too. The minister will issue 3 reminders first before this action can be taken.

• The Ministry found 8 key findings which resulted in the sudden closure of Adam Air:

1. Company Check Pilot (CCP) did not conduct training, retraining and assessment to its flying instructors and candidate instructors as required by the standard operating procedure of Boeing 737 classic series.

2. Proviciency checks were done by pilots who don't have a CCP authorisation to do so.

3. Pilots did not conduct evacuation emergency procedures as required by the standard operating procedure Boeing 737 series during mishaps.

4. Aircraft maintenance by the technical department was not done in accordance with the company maintenance manual and maintenance program.

5. Quality Assurance Department failed in delivering its responsibility or always being intervened by other departments which are not related to safety and quality issues.

6. Engineering Department failed in delivering its responsibility which was exhibited by the no action taken against recurring mechanical problems, no analysis done and no pre emptive measure taken to stop it from recurring.

7. The airline didn't have the required component and spare parts which are needed (in minimal level) in order for them to operate. This resulted in delays in aircraft maintenance program.

8. The airline hires non qualified engineers to conduct maintenance to its aircrafts. The Ministry found irregularities such as landing gear fibration, engine parameter fluctuate and IRS problem.

20 March 2008, Thursday - Adam Air Tutup, Berkah bagi Maskapai Lain (Adam Air's closure brings joy to other airlines)

• Indonesian National Air Carrier Association (INACA) urges member airlines not to form a 50-50 shareholdings in their company because it will lead to so many troubles, referring to Adam Air's case.
• The suddent closure of Adam Air caused total capacity to decrease by 10% because from 206 commercial aircrafts which plying the Indonesian skies, 22 of them belong to Adam Air and now all 22 are grounded. Adam Air is serving 5-7 million passengers at the moment, having a 10% market shares throughtout the entire Indonesian archipelago. The airline serves 35 domestic routes, Singapore and Penang with 22 aircrafts and the strength of 3,000 employees.
• However, the closure of Adam Air brings joy to other airlines. Flag carrier, Garuda Indonesia experienced an average load factor of 91% since Adam Air's case arises. Usually, the airline's load factor is between 75-80%. At Mandala Airlines, load factor rose to an average of 95% from 80-85% previously.

21 March 2008, Friday - Klaim Tiket Adam Air Capai Rp 15 Miliar (Adam Air's ticket claims amounting to Rp 15 billion)

• Adam Air promises all its passengers and associated travel agents that all their tickets and deposit reimbursement will be returned accordingly. The transaction, which is valued at IDR 15 billion (MYR 6 million) will be funded by internal fund.
• The founder of Adam Air, Adam Adithya Suherman, admitted that the company is bleeding but all reimbursement will be of utmost priority of the shareholders. They will use their own money if there is shortage in company's fund to settle the reimbursement.
• Adam Air also insisted that the reimbursement should be bourned by Bhakti Investama as well, who pulled out from the company on Thursday, 13 March 2008. Adam claimed that Bhakti did not submitted any legal document about its withdrawal from the company so automatically they are subjected to pay the reimbursement as well, as they own 50% of Adam Air shares.
• Adam Air signed an agreement with Astindo (Asosiasi Perusahaan Agen Penjual Tiket Penerbangan Indonesia) to ensure that all ticket and deposit reimbursements to passengers and travel agents will be concluded within 10 working days beginning 24 March 2008. No fees will be deducted from passengers ticket claims.
• Adam Air is now in an uncertain situation because its shareholders are not sure what will happen to the airline after the 3 months flying ban imposed to them being lifted. The company is now concern about the compensation to its 3,000 employees should the company decided to end its operation eventually. Even if not, they still have to pay some compensations to its employees during the time the company was banned from operating. Adam Air is preparing itself should they were destined to close permanently. The total compensation to its employees are now being calculated.

22 March 2008, Saturday - Adam Air Digugat Konsumen (Adam Air sued by consumers)

• Adam Air is predicted to be rained with law suits. Consumer Foundation Indonesia (Yayasan Lembaga Konsumen Indonesia) announced that they are willing for provide avenue for any Adam Air passengers who were affected by the sudden closure of the airline. The Foundation claims that Adam Air failed in managing the issues (ticket reimbursement, stranded passengers) in proper manners.
• Adam Air has been sued many times. One of the consumer related lawsuit that the company is oblidge to at the moment is a suit by a family of its cabin crew, Ratih Sekar Sari, who died in the missing flight KI 574 in Sulawesi on 1 January 2007. Adam Air is being sued for IDR 1.5 billion (MYR 600,000).

[Pieter C. 5]

Azizul,

 

Thanks for sharing !!! : interesting read

 

Will miss the colourful livery in the Indonesian- and Malaysian skies

 

(you know I love orange for obvious reasons )

[Mohd Azizul Ramli 2]

Will miss the colourful livery in the Indonesian- and Malaysian skies (you know I love orange for obvious reasons )

Ja, Nederlander houd van Oranje! So long... farewell Adam Air. The 'Peter Pan' finally lost its wings.

 

 

[Ellist 0]

i wonder wat criteria tht made ADAMAIR hold "Top brand award" ?

[Mohd Azizul Ramli 2]

The official report for aircrash flight KI 574 has been released. Again, it became news headlines in local dailies. Non functional navigational system and pilot errors are the cause of the crash.

 

 

(Translation for those who can't read Bahasa Indonesia):

 

Translation of the diagram:

 

1. Adam Air's Boeing 737-400 flight KI 574 disappeared from the radar at 35,000 feet altitude.

 

2. Cockpit Voice Recorder (CVR) analysis showed that both pilots experienced navigational problem.

 

3. Flight Data Recorder (FDR) analysis showed that the aircraft was on autopilot mode before it went non functional.

 

4. The aircraft banked to the right and a reminder was activated when it banked more than 35 degree. At banking angle of 100 degree, the pilots still failed to perform a 'roll' to balance the aircraft's position.

 

5. The aircraft plunged at a high speed of 0.926 mach. The aircraft's pressure changed drastically from positive 3.5 G to negative 2.8 G.

 

6. The high speed and high pressure caused the aircraft to be shattered by the time it hit the sea. The largest debris of the aircraft was measured at 2 square meter.

 

 

Full news:

 

Komite Keselamatan Nasional Transportasi (National Transportation Safety Committee) concludes that Adam Air flight KI 574 which lost and crash into the sea near Majene in Sulawesi are caused by pilot errors who were too busy fixing the non functional navigational system (initial reference system, IRS) hence not being able to handle the aircraft accordingly before it crashed into the sea.

 

The result of the cockpit voice recorder (CVR) analysis found that both pilots experienced navigational problem which resulted in them too focus in troble shooting the initial reference system (IRS) for 13 minutes before the aircraft plunged into the ocean. This caused pilots' focus over the flight standard requirements became mininal/distracted. Before the incident, the aircraft PK-KKW had experienced multiple IRS failures.

 

The result of the flight data recorder (FDR) analysis shows that the aircraft flew at FL 350 (35,000 feet) with autopilot. To ensure a balance wings level, the autopilot system fixed the main steering equipment 5 degree to the left. However, the pilot and his co pilot saw the coordinate of both IRS (left and right) were not identical. The pilots then changed the IRS from NAV to ATT to balance up the IRS coordinate at both wings, without realising that by changing the IRS fuction from NAV to ATT, the aircraft has to be flown manually, as the autopilot has been switched off. This resulted in the aircraft flown without any direction.

 

Soon after, the main steering equipment came to a neutral position (centered) and the aircraft slowly experiencing a 'slowroll' to the right. Bank angle reminder/siren was activated by the time the aircraft experienced a right bank of more than 35 degree. FDR data showed that even after the aircraft has been banked for more than 100 degree, the pilots were still didn't perform a 'roll' (reversal of position so that the aircraft is in normal position). The pilots were still busy fixing the IRS system failure.

 

Then the aircraft suddently experiencing a G-force of positive 3.5 G at Marc 0.926. Then, the pressure inside the aircraft changed drastically to negative 2.8 G. This resulted in the pilots became misoriented while trying to reverse back the aircraft's position. The aircraft plunged and experienced a structural damages and can't be controlled anymore.

 

The Komite added that the crash was resulted from a combination of several factors. According to data from technical logs and maintenance records, between the period of October 2006 until December 2006, the aircraft experienced a total of 154 multiple categories failures. There was also no indication that the pilots have taken a corrective measure to allign the aircraft's position correctly after the bank angle reminder/siren was activated.

 

The aircraft is a Boeing 737-400 with registration number PK-KKW. It operated flight KI 574 from Surabaya's Juanda on 1 January 2007 at 05:59 with 2 pilots, 4 cabin crews and 96 passengers (85 adults, 7 children and 4 infants). The aircraft was detected lost from the radar at a cruising altitude of 35,000 feet. The aircraft's black box was discovered at the offshore of Majene on 27 August 2007, 8 months after it crashed.

 

This official result caused some family members of the flight to sue Adam Air. Most of the passengers were from Manado in North Sulawesi, the final destination of the flight. Earlier, Adam Air has paid a compensation of IDR 875 million (MYR 350,000) for each passengers to their next of kins.

 

However, the families of the passengers will proceed with the charges against Adam Air because now it is proven that the crash are caused by Adam Air's negligence. Adam Air failed to fix the navigational system inside the aircraft and their pilots' training program were proved not comprehensive. The families will still proceed with the new charges against Adam Air despite compensation has been paid. "Money couldn't bring our love ones back to life", they insisted.