Garuda Indonesia Is Believed To Be Able To Pay Off Its Debts
JAKARTA - Aviation observer Arista Atmadjati assessed that the agreement between PT Garuda Indonesia and the company Lessor Aercap Ireland Limited (Aercap) was the right decision taken in the midst of the COVID-19 pandemic and financial difficulties experienced by Garuda Indonesia airline.
"Perhaps this is the best way, win-win solutions so that Garuda can also operate because the situation is very difficult due to the pandemic and restrictions on passenger movement", Arista said as quoted by Antara, Tuesday, August 3.
Arista said that the implementation of Community Activity Restrictions (PPKM) made the number of passengers on the Indonesian national airline drop drastically. In addition, the policy of strict travel conditions also makes people uncomfortable using air transportation.
On the other hand, he said, Garuda Indonesia must be able to convince the Lessor that the national airline owned by Indonesia can still survive and be credible in carrying out its obligations.
He continued, Garuda Indonesia needs to develop a strategy through action plans and marketing plans that are in line with the expectations of both parties.
"Garuda Indonesia must be able to give confidence to Lessors that they are credible to still be able to pay in installments even though currently flight conditions are very limited", he said.
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Regarding the relocation of nine Boeing B737 800NG aircraft, the observer from the Arista Indonesian Aviation Center (AIAC) assessed that there were no problems. According to him, all flight operations will continue as normal.
"There is no problem because Garuda Indonesia has relocated its planes, if I'm not mistaken, it's in Barbados. Later on, technically, just copy and paste", he said.
PT Garuda Indonesia was sued for bankruptcy by Lessor Aercap Ireland Limited (Aercap) after signing the Global Side Letter Agreement on July 28, 2021. Garuda Indonesia also agreed to fly and relocate nine B737 800NG aircraft leased by the Company to a location that has been agreed by both parties.