Air Timor, which from Tuesday suspended its flights between Dili and Denpasar (Bali), has blamed the government of Timor-Leste for decisions that led to it losing US$3 million in 2016, the company said in statement in the Timorese capital.

Specifically, the company said in a statement, the decision to grant a license to a third party to fly to Dili led to overcapacity on the route, occupancy rates of less than 50% and consequent daily losses of US$10,000.

“Over the past eight years, we have built one of the best companies in Timor, we were a big contributor and supporter of tourism and of the government“, said Abessy Bento, director of Air Timor, adding” in a year the government policy destroyed us.”

Inacio Moreira, deputy minister of Public Works, Transport and Communications – who is mentioned by name in the Air Timor statement – told Portuguese news agency Lusa neither he or the government were responsible for what he considered to be the, “internal problems of a private company.”

“Air Timor is a private company and the government has no responsibility for private companies, as it only deals with the regulation process,” added the deputy minister.

In a statement, Air Timor said the government’s decision in late 2015 to grant NAM Air (a subsidiary of Sriwijaya Air, which already offered flights between Timor-Leste and Bali) an operating license, led to over-capacity on the route.

Air Timor also announced it had reduced flights between Timor-Leste and Singapore from three to two flights per week. (macauhub)