JakartaGlobe-Oct 24

National carrier Garuda Indonesia could face bankruptcy amid ballooning debts and financial hardships due to the devastating impact of the Covid-19 pandemic.

According to media reports on Sunday, the government has prepared all possible contingencies for Garuda, including liquidation and a replacement by state-owned air charter company Pelita Air Service if ongoing rescue measures are fruitless. “If we meet a dead-end, we will close [Garuda] down because injecting more state money is impossible given the company’s massive debt loads,” Kartiko Wirjoatmodjo, a deputy for the state-own enterprises minister, told Antara news agency. He said Garuda is currently negotiating with lenders and tens of aircraft lessors in its attempts to restructure debts. Even if Garuda can stabilize its financial conditions, it’s almost certain that the company will no longer be able to serve long-haul flights in the future, Kartiko added. Read more at: https://jakartaglobe.id/news/garuda-on-the-brink-of-bankruptcy