Garuda Airlines to Re-Schedule Debt Repayments
Garuda Airlines is looking to propose a reschedule in its debt repayments to the European Credit Agency to whom it owes US$794 million.
In desperate need to improve the condition of its balance sheet Garuda is exploring a whole range of options including a business-to-business renegotiation of its debt burden, a conversion of debt to equity and a rescheduling of its outstanding debt burden according to an article in Bali Discovery.
Garuda has been through hard times before and I have no doubt it will recover to its former glory debt-free but when is anyone's guess. Both Bali bombings played a crucial part in the airline accruing debt with tourist staying away from Bali in their droves. This has not only affected Garuda but other domestic airlines as well who would carry tourists to other parts of the archipelago but these airlines have not been affected as dramatically as Garuda's International fleet.
Meanwhile, the Indonesian National Carrier is undertaking dramatic steps to enhance its operational efficiency by cutting operational costs by 10% system-wide rationalizing its international and domestic route system and reducing the types of aircraft it flies.
According to local press report, Garuda is seeking to reduce its debt burden from US$794 million to US$274 via the combination an agreed haircut with ECA and a conversion of outstanding debt to equity.
Garuda has rearranged its flight schedule times also with later departures much to the annoyance of the wiling tourists travelling to the island of Bali. But hey, when you are in paradise then who cares what time of the night you fly out!.
By BootsnAll | Permalink
Related Posts
- Indonesia continues bans of foreign budget airlines
- Govt Plans Fund to Keep Garuda Flying: Indonesia
- Garuda to cancel Bali as travel hub
- Mandala air crash in Medan Indonesia
- Garuda Indonesia denies being sold to foreigners
Subscribe
|
Print
|
Share               
|
Comments
Hi Laurs,
I’m north of you in Wanneroo. Actually I like the new return flight times for Garuda. It will give the travellers that much a longer day to do that last bit of shopping and down an extra crate or two of bintang!.
Hi Barrie
We are in High Wycombe and with the new road open which connects Horrie miller with Dundas Road we could nearly walk home—if it wasn’t for the bulging suitcases!!!
Maybe when you are back in perth we can get together at Paddy Hannans,for a drink and a talk about our very favourite place in the whole world-Bali.
Our next planned trip to Bali is Oct 2007 when we will meet up with our friends from Northern Ireland.We try to to this every second year then they come down here for a few weeks .Mike and I duck up to bali betweeen times–every chance we get.
Cheers laurs
Ah my Dear friends in Bali—the biggest reason that I insist on flying only Garuda for my bali holidays is the flight times.
We leave Perth at 8am arriving in bali 11.30 am voila–a whole day to get in the swing.When the sad date of our departure arrives we have the whole day again to run around saying our farewells,drinking BintNG,cramming last minute shopping ect–eventually leaving for the airport at about 6pm.
Mind you we live in the suburb right beside the perth airport so don’t have to worry about a lengthy or costly ride home.
Last trip we could have flown Aus Airlines at approx $150 less than Garuda but no way–the outbound flight left perth at 5.30pm and the flight home left Bali at 1pm–I don’t think so!!!!!
Cheers laura