Update on Garuda restructuring

Speaking to a committee of parliament, the CEO of Garuda Indonesia has given a bit more additional information on the planned large restructuring of the airline. Most notable is that the airline has a debt of 4.5 billion USD and is currently operating only 41 of its 139 aircraft. The airline is now seeking four options to reach its reorganisation to profitability and the most favoured one is a restructuring through bankruptcy.

Compared to our report last month, the airline has now said it wants to reduce its fleet even more and is seeking to return another 98 aircraft to their lessors. If the negotiations are succesful, it will leave Garuda with a fleet of 41 aircraft, the same it operates today. The airline will also soon decide to cut its international network with Melbourne and Perth to be closed, Singapore to be reduced and Amsterdam and Seoul under review but with the intention to be closed as well.

Photo by Anton Homma.