JAKARTA, Indonesia (CNN) -- Indonesia has temporarily grounded all Adam Air flights starting Wednesday because it says the discount airliner "failed to implement quality standards for its aircraft."
Officers examine an Adam Air plane which halted suddenly in the middle of the runway in Surabaya in February 2007.
"The operational specification of Adam Air will be revoked. In effect, Adam Air will not be allowed to operate any airplanes effective 12 a.m. Wednesday, 18 March 2008," according to a statement from Indonesia's civil aviation chief, Budhi Muliawan Suyitno.
A year ago, a Garuda Airlines plane overshot the runway in Jakarta, careened into a rice patty field and burst into flames, killing more than 20 people on board.
On January 1, 2007, Adam Air Flight 574 crashed, killing all 102 people on board. A day after the crash, there were reports that 12 survivors had been found. But those 12 survivors, it turned out later, were from an Indonesian ferry that sank four days earlier.
For more than a week after the Adam Air flight disappeared off the radar screens, Indonesian authorities scoured the mountainous terrain of western Sulawesi province and the Java Sea for any sign of the missing aircraft, but found nothing.
The suspension will last for three months, according to Bambang Ervan, a spokesman for Indonesia's Air Transport Directorate.
Adam Air's permit was revoked because it "failed to implement quality standards for its aircraft, including pilot training and supervision in accordance with standard operational procedures," Ervan said.
The directorate sent a letter to Adam Air regarding its decision, but has not received a reply.
Adam Air CEO Adam Suherman told CNN the airline is not surprised by the Air Transport Office's announcement.
He said the airline had to suspend its operations Tuesday morning because one of its main investors pulled out, causing the airliner financial problems.
Indonesia's aviation authorities recently issued a report outlining a road map to safety, acknowledging that their track record on safety is unacceptable.
The U.S. Federal Aviation Administration lowered its rating of Indonesia's safety record and the European Union banned all Indonesian airliners. E-mail to a friend
CNN's Kathy Quiano in Jakarta and Arwa Damon contributed to this report