Intensifying Performance Recovery Measures, Garuda Indonesia Returns Airplanes To Lessor

Garuda Indonesia aircraft. (Photo: Doc. Garuda Indonesia)

JAKARTA - PT Garuda Indonesia Tbk is currently accelerating the early return of fleets whose lease period has not yet matured. This is in line with the intensive efforts to recover the business performance of the national airline.

This strategic move was marked by the return of two B737-800 NG fleets to one of the aircraft lessors. The acceleration of the return is carried out after a mutual agreement between Garuda Indonesia and the aircraft lessor, in which one of the conditions for returning the aircraft is to change the registration code of the aircraft concerned.

President Director of Garuda Indonesia, Irfan Setiaputra, said that the accelerated return of fleets whose lease period had not yet matured was part of Garuda Indonesia's strategic steps in optimizing fleet productivity by accelerating the period of aircraft leases.

"This is an important step that we need to take in the midst of pressure from business performance due to the COVID-19 pandemic, where our main focus is adjusting to the projected market needs in the new normal era," he said in an official statement, Monday, June 7.

But unfortunately, Irfan did not explain in detail the identity of the aircraft lessor who had reached the agreement. Even so, Irfan emphasized that his party is currently communicating with other lessors.

"Currently, we are also continuing to communicate with other aircraft lessors, of course, by prioritizing the applicable legal and compliance aspects," he said.

As is known, the national airline PT Garuda Indonesia (Persero) Tbk is being hit by a huge debt problem. Various efforts were made to save the state-owned airline, starting from issuing an early retirement program to cutting the number of commissioners.

This company coded for GIAA shares does have a red report card in financial aspects, including the debt value in 2021 which will reach Rp70 trillion and could continue to grow along with the sluggish aviation business due to the COVID-19 pandemic.

The state-owned airline is reportedly offering an early retirement program which is effective from July 1st. This offer is payable in the e-mail received by the employees. This program is carried out as one of the efforts to restore business performance in the new normal era.

Irfan said management is in the early stages of offering an accelerated pension program for Garuda Indonesia employees who meet the program participation criteria and requirements.

Furthermore, Irfan said that the pandemic situation, which is still ongoing today, requires companies to take steps to adjust supply and demand aspects amidst declining operating performance due to the significant decline in flight traffic.

"We need to say that this accelerated retirement program is offered voluntarily to employees who have met the criteria. This policy is the best offer we can make to employees in the midst of the current pandemic situation, which of course always prioritizes the common interests of all parties, in this case employees and companies," he said in a short message received by VOI, Friday, May 21.