Garuda, 61% owned by the govt, has already cut employee salaries and renegotiated aircraft lease agreements. FMTNews
JAKARTA: Indonesia is finalising a US$1 billion financial bailout plan for its flag carrier to help it stave off a debt default after the coronavirus crisis forced the airline to ground most of its planes.
Last month, the carrier asked bondholders to begin talks with its financial adviser, citing an “extremely challenging environment for airlines” following the virus outbreak. “Garuda remains a good company with bright prospects,” said Wirjoatmodjo, a former chief executive of state-owned PT Bank Mandiri. “Its business will remain robust after the outbreak ends.”
Garuda and its unit PT Citilink Indonesia secured around US$384 million in loans and credit lines from state lender PT Bank Rakyat Indonesia this month to shore up working capital.
Malaysia Latest News, Malaysia Headlines
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