Garuda Indonesia Jalin Financing Cooperation Of IDR 725 Billion With PPA

Garuda Indonesia aircraft. (Photo: Wikimedia Commons)

JAKARTA - Garuda Indonesia signed a cooperation with the Fleet Restoration Facility with a Revenue Sharing Scheme with PT Perusahaan Pengelolaan Asset (PPA). The signing of this collaboration was carried out by the President Director of Garuda Indonesia, Irfan Setiaputra, together with the President Director of PPA Yadi Jaya Ruchandi in Denpasar, Bali.

The signing of the agreement is a follow-up to the signing of the Offering Letter on the Term Sheet Term's Latest Indicative Provisions (MoU) which was signed last August.

The financing facility with a value of up to Rp. 725.000,000,000 through a profit-sharing scheme that will last for 5 years, is implemented in stages on a number of routes that will be used as a cooperation scheme for profit sharing, including Jakarta-Surabaya-Jakarta, Jakarta- Makassar-Jakarta and Jakarta-Jayapura-Jakarta.

President Director of Garuda Indonesia, Irfan Setiaputra, said that this collaboration is a form of Garuda Indonesia's commitment to optimize performance transformation mission steps in an effort to continue to make a positive contribution to the community in the midst of the momentum of national economic recovery, especially the Tourism sector through increasing accessibility of safe and comfortable flight services for the people of Indonesia.

"The COVID-19 pandemic, which has occurred for more than 2 years, is undeniable to have brought the aviation industry to face various operational performance challenges, including the limited number of fleets that are ready to operate (serviceable) after previously the fleet was not operating amid the process of restructuring its business obligations, including negotiations with lessors," explained Irfan in a written statement, Saturday, September 17.

Just so you know, these financing facilities will be used to accelerate the recovery of company performance. Especially on flight operational lines that will be optimized for fleet restoration and maintenance of aircraft spare parts, such as engines, APU, shipping parts, and various other aircraft components, which will be operated by the company to support the smooth operation of Garuda Indonesia.

This cooperation in financing facilities provides its own optimism in terms of business sector trust in Garuda Indonesia's business outlook in the future. Of course, we will continue to optimize and study this opportunity regularly to adjust to the needs of the community, in line with our efforts to ensure that Garuda Indonesia's business plan can be realized optimally to achieve more agile, adaptive and profitable business entities," said Irfan.

Previously, Garuda Indonesia had gradually continued to optimize aircraft utilization in line with the results of negotiations with the lessor in line with the approval of the peace proposal in the PKPU process.

Through these efforts, the company will optimize efforts to increase the number of serviceable fleets which are projected to gradually increase to around 60 aircraft in support of the acceleration of the Company's performance improvement until the end of 2022.