Report from Tribunnews Journalist, Ismoyo
TRIBUNNEWS.COM, JAKARTA – State-owned airlines Garuda Indonesia, is experiencing an unhealthy financial condition.
As reported by Bloomberg, President Director Garuda Indonesia, Irfaniaputra said that Garuda has a debt of around Rp. 70 trillion or the equivalent of US $ 4.9 billion.
This figure is increasing by around Rp1 trillion every month due to continuing to delay payments to suppliers.
The company has negative cash flow and debt of minus IDR 41 trillion.
Failure to carry out the restructuring program “may result in the company being stopped suddenly,” said Irfan as reported by Bloomberg, Sunday (23/5/2021).
Also read: Garuda’s Response Regarding the Shares Affiliated Transaction by CT Corp
It is known that the passenger volume of the Garuda Group decreased 66 percent last year due to restrictions and limited domestic demand.
By mid-2020, airlines had also scuttled around 825 staff after previously cutting wages.
Garuda Indonesia has the potential to reduce the number of aircraft operated to less than half of its main fleet.
Irfaniaputra said that this was done to survive the crisis caused by the pandemic.
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