Indonesian flag carrier to halve fleet amid pressure of COVID-19
Indonesia’s national flag carrier Garuda is planning to halve its fleet of 142 aircraft as it faces huge pressure due to the COVID-19 pandemic and a debt of 70 trillion IDR (4.9 billion USD).
Aircraft of Indonesia’s national flag carrier Garuda in Tangerang (Photo: AFP/VNA)
Jakarta (VNA) – Indonesia’snational flag carrier Garuda is planning to halve its fleet of 142 aircraft asit faces huge pressure due to the COVID-19 pandemic and a debt of 70 trillion IDR (4.9billion USD).
The airline needs to completely restructureits business, potentially reducing the number of planes it operates, PresidentDirector Irfan Setiaputra said in an address to staff.
Bloomberg quoted Setiaputra as saying thatGaruda’s debt increases by more than 1 trillion IDR each month as it continuesto delay payments to suppliers.
The carrier is projected to earn only 56million USD in revenue this month. Meanwhile, it has to pay the same amount foraircraft lease rentals, 20 million USD each for maintenance, fuel purchases andwages.
Setiaputra warned that Garuda may halt itsbusiness operations if restructuring is not successful.
At present, the airline only operates 41aircraft of its fleet, except for that of its low-cost brand Citilink.
It offered early retirement programmes toits employees as an effort to survive and restore the airline's performance.
Garuda has a total 15,368 employees, whileits number of flights plunged 66 percent since last year./.
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Aircraft of Indonesia’s national flag carrier Garuda in Tangerang (Photo: AFP/VNA)
