Garuda Boss Delays 3 New Aircraft, Prioritize Fleet Repair

JAKARTA - Garuda Indonesia President Director Glenny H. Kairupan emphasized the delay in the procurement of three new aircraft so that companies can prioritize improvements to existing fleets for efficiency.

Glenny revealed that the company previously signed an MoU for four aircraft orders. However, of all those plans, only one unit has been paid a down payment. Three other aircraft were officially postponed (posted).

"MoU has four aircraft, only one has DP. We have postponed the remaining three, because the priority is to repair the fleet," Glenny said as quoted by ANTARA, Friday, November 15.

Glenny made a firm decision. Instead of adding three new aircraft, Garuda chose to postpone fleet expansion and concentrate energy on repairing existing aircraft.

He said the decision emphasized the direction of Garuda's improvement which has been increasingly consistent since the entry of the government rescue scheme and BPI Danantara.

Although Danantara agreed to disburse a capital of Rp. 23.67 trillion, the former Indonesian Army pilot was quite careful.

Glenny, who is a pilot graduate of the Curug Air Transportation Education Institute (LPPU), assessed that Garuda's rescue should start from the operational sector which has been burdening finances.

"If it is not repaired, the cost will continue," he said.

Glenny explained that his party estimated that the full recovery process would take two years until Garuda again made a profit.

Meanwhile, Garuda Indonesia Deputy President Director Thomas Sugiarto Oentoro added that all expansion plans are currently being re-calculated.

He said the new position of Director of Transformation held by Neil Raymond Mills made the evaluation of the fleet and network of routes more stringent.

"It's not canceled, but some of it will be postponed until the analysis is final," said Thomas.

The decision to contain the expansion became a strong signal under the new captain Glenny Kairupan, Garuda chose stability and efficiency first, before flying higher again.