Lion Air: Passenger numbers fell less than 5 percent after deadly crash

The cause of the Oct. 29 crash into the Java Sea has yet to be determined. (File/AFP)
Updated 10 December 2018
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Lion Air: Passenger numbers fell less than 5 percent after deadly crash

  • “It was under 5 percent compared to the traffic at the same month last year,” said Lion Air CEO on November passenger numbers
  • He said Lion Air did not “clearly understand” whether the crash was responsible for the fall in traffic in November

JAKARTA: Lion Air said on Monday passenger numbers dropped by less than 5 percent in November compared to a year earlier, after one of its Boeing Co. 737 MAX jets crashed in late October killing all 189 people on board.
“There was a decline but it wasn’t too significant,” the airline’s CEO Edward Sirait told television network CNN Indonesia. “It was under 5 percent compared to the traffic at the same month last year.”
He said Lion Air did not “clearly understand” whether the crash was responsible for the fall in traffic in November, which he said was a low season for travel.
The airline, Indonesia’s largest, is privately owned and does not publicly release traffic statistics or financial results.
Sirait said last week Lion Air was considering canceling orders for 737 MAX jets but it had not yet made a decision.
Sources told Reuters that relations between the airline and Boeing had worsened in a spat over responsibility for the crash.
The airline has 190 Boeing jets worth $22 billion at list prices waiting to be delivered, on top of 197 already taken, making it one of the largest US export customers.
Bankers and some analysts say Lion Air and Southeast Asian rivals over-expanded and would be comfortable with fewer orders.
Boeing has declined to comment on contractual matters but industry sources say aerospace companies rarely leave room for unilateral cancelations except in exceptional circumstances.
The cause of the Oct. 29 crash into the Java Sea has yet to be determined.


Saudi Arabia and UAE launch a new joint cryptocurrency

Updated 20 January 2019
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Saudi Arabia and UAE launch a new joint cryptocurrency

  • The cryptocurrency will be limited to banks during its first stages
  • The program will also help the two countries evaluate the monetary policies of a centralized currency

Saudi Arabia and the UAE have launched a joint cryptocurrency during the first meeting of the Saudi-Emirati Coordination council Saturday in Abu Dhabi, UAE’s national press agency WAM said.

The cryptocurrency will be limited to banks during its first stages, until the governments have a better understanding of how Blockchain technology operates cross-borders.

The currency operates on the use of a “distributed database between the central banks and the participating banks from both sides,” aiming to protect customer interests, set technology standards and assess cybersecurity risks. The new program will also help evaluate the impacts of a central currency on monetary policies.

During the meeting, representatives of Saudi Arabia and the UAE also signed the Joint Supply Chained Security Cooperation program, which tests the two countries abilities to provide vital supplies during times of crisis and national emergencies, as well as share expertise and knowledge in the field.

All 16 members of the executive committee of the council followed up on the execution of the initiatives mentioned in the Strategy of Resolve.

Representatives also set five other initiatives to enhance the cooperation between the two countries, such as facilitating the traffic between ports, improving airports to make it easier for people with disabilities to travel, creating a financial awareness program for children aged 7-18, starting a joint platform to support local SMEs, and the integration of civil aviation markets,

The committee was headed by Mohammad bin Abdullah Al-Gergawi, minister of cabinet of affairs and the future of UAE, and Mohammed bin Mazyad Al-Twaijri, minister of economy and planning in Saudi. The committee will also monitor the implementation of the initiatives.