PT Garuda Indonesia (Persero) Tbk is in the middle of a huge debt problem.
Even so, Garuda Indonesia Independent Commissioner Yenny Zannuba Wahid hopes that the state-owned airline will not go bankrupt.
This was conveyed by Yenny in a tweet on her personal Twitter account, @yennywahid.
Until now, the state-owned enterprise (BUMN) in the commercial aviation sector has been hit by a storm of problems.
Garuda Indonesia (GIAA) have a red report card in financial aspects, including the debt value in 2021 which will reach IDR 70 trillion.
In the midst of such dire conditions, Yenny considered that the GIAA must be rescued.
The main reason is because Garuda Indonesia is an airline that has become the face of Indonesia because of its red plate status.
“However, Garuda is our national flag carrier. It must be saved. Please support & pray,” Yenny tweeted.
Previously, Bloomberg reported that the President Director of Garuda Indonesia, Irfan Setiaputra, stated that the state-owned airline issuer was in a difficult financial condition.
Irfan said that GIAA had debts of IDR 70 trillion or USD 4.9 billion. The total debt increased by more than IDR 1 trillion per month in line with the delays in payments made by the company to its suppliers.
“Currently GIAA’s cash flow is in the red zone and has an equity of minus Rp41 trillion,” explained Irfan.
Garuda Indonesia will also carry out business restructuring which includes reducing the number of aircraft fleets by up to 50 percent. On May 21, 2021, GIAA’s management announced an early retirement program to the public.
Trade unions also take the position of not rejecting or accepting voluntary early retirement offers, namely by inviting their members to consider the option personally.
Following the announcement, it was discovered that GIAA would restructure the business completely. The policy risks reducing the number of aircraft in operation by half or the remaining aircraft by less than half the current number.
Irfan said that of the existing 142 aircraft, the company will only operate no more than 70 aircraft.
The statement refers to the full-service airline (full-service) Garuda, excluding the low-cost carrier (low-cost carrier) Citilink.