Garuda Boss Says Bankruptcy Off Table Despite Covid Strains

The head of Indonesia’s flag carrier said better terms on aircraft loans will help it avoid falling into bankruptcy as the nation grapples with surging coronavirus cases, Bloomberg News reported. “We discussed the risks, the benefits, the pluses and minuses and the company’s leadership decided against it,” PT Garuda Indonesia President Director Irfan Setiaputra said when asked in a Sept. 18 interview about considering bankruptcy proceedings. Garuda is expecting a 8.5 trillion rupiah ($580 million) bridging loan from the government to come through this year, according to Setiaputra, an industry outsider who joined the airline in January just before the Covid-19 outbreak began. The injection would help after the airline suffered a $713 million net loss in the six months through June, though it is taking longer than initially hoped, Setiaputra said. Read more

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