Garuda is considering restructuring, bankruptcy, liquidation



Garuda Indonesia plans to halve its fleet

25.05.2021 – 05:14 UTC

Garuda Indonesia (GA, Jakarta Soekarno-Hatta) is considering a significant reduction in its fleet as a cornerstone of its post-COVID restructuring strategy, which could halve the number of its planes to around 70, said chief executive Irfan Setiaputra in a reported internal note. by Bloomberg.

“We have 142 planes, and our preliminary calculation of how we see this recovery going, we will be operating with multiple planes no more than 70,” Irfan said.

In a follow-up statement to Indonesian media, Irfan said the downsizing would be adjusted based on the level of demand in the coming years. The figures he gives only relate to the main fleet of Garuda Indonesia as well as the regional divisions Garuda Explore (GA, Jakarta Soekarno-Hatta) and Garuda Explore Jet (GA, Jakarta Soekarno-Hatta), but not the low-cost carrier. of the group, Citilink (HQ, Surabaya).

Irfan said Garuda currently operates only 41 aircraft. Many of its aircraft on the ground had been seized by lessors due to defaults. However, he also did not identify the number of affected aircraft …

U.S. Department of Justice Joins Garuda CRJ1000 Agreement Corruption Investigation

10.05.2021 – 08:37 UTC

The United States Department of Justice has requested documents from Bombardier Aerospace regarding the sale of eighteen CRJ1000s to Garuda Indonesia (GA, Jakarta Soekarno-Hatta) in 2011 and 2012, a transaction that is already the subject of a survey by the UK Serious Fraud Office (SFO). , Reuters reported.

Bombardier told the news agency he “didn’t know” until the SFO began its process at the end of 2020. The Canadian automaker has since launched an international audit, which has so far failed revealed no fault.

“So far we’ve been studying it since the SFO reached out and now the DOJ is reaching out, but you know from our side that we haven’t found anything. But we will definitely continue to collaborate,” said Managing Director Eric Martel.

Garuda Indonesia acquired the 18 regional jets between 2012 and 2015. It has been trying to retire them for several months, citing their poor adequacy with the Indonesian domestic market. In February 2021, Director General Irfan Setiaputra announced a unilateral return of the twelve planes of the …



Source link

Previous Commentary: Ignoring China's grip on critical metals production is not an option
Next Brent hits $ 70, OPEC meeting, strong Eurozone PMI data