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Garuda Indonesia seeks court protection from creditors

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Garuda Indonesia negotiates with lessors for return of up to 50 jets | News  | Flight Global

Garuda Plans to Cancel Jet Orders Worth Billions of Dollars

Distressed flag carrier Garuda Indonesia plans to cancel billions of dollars worth of aircraft orders from Airbus SE and Boeing Co. as part of a court-supervised debt restructuring to slash its debt and weather a slump in air travel due to the pandemic.

The state-owned carrier wants to cancel its order for nine A330-900 jets and four A330-800s, Finance Director Prasetio said following a meeting with creditors in Jakarta on Tuesday. The order is worth more than $1 billion, based on prices provided by aircraft appraiser Avitas Inc.

Garuda is also using the court process to move forward with the cancellation of the remaining 49 Boeing 737 Max 8 it has on order, Prasetio said. 

Garuda plans to keep its order for 25 A320 aircraft, Prasetio said.

The airline has said it would return more planes as it seeks to scale down its fleet to 66 from 142 before the pandemic.

https://themalaysianreserve.com/2022/03/01/garuda-plans-to-cancel-jet-orders-worth-billions-of-dollars/?fbclid=IwAR3f7oyfxo3PavrZqIe3TFEp76Fn_-wCg9NADEUtFmnwbL4hAxE2bE7mx_k

https://www.channelnewsasia.com/business/garuda-indonesia-negotiating-terms-airbus-boeing-orders-2529396

Current Group fleet:

  • Airbus A320ceo - 39
  • Airbus A320neo - 10
  • Airbus A330-200ceo - 7
  • Airbus A330-300ceo - 17
  • Airbus A330-900neo - 5
  • ATR 72-600 - 19
  • Boeing 737-500 - 2
  • Boeing 737-800 - 38
  • Boeing 737 MAX 8 - 1
  • Boeing 777-300ER - 9
  • Bombardier CRJ1000 - 18
  • Total - 165 (105 excluding Citilink fleet)

On order:

  • Airbus A320-200neo - 25
  • Airbus A330-800neo - 4
  • Airbus A330-900neo - 9
  • Boeing 737 MAX 8 - 49
  • Total - 87

 

Returned to lessors:

  • Airbus A320ceo - 2
  • Boeing 737-800 - 36
  • Boeing 777-300ER - 1

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Like most airlines, new widebody aircraft are now not needed unless international travel is opened up.

GA has too many aircraft types, they need to simplify the fleet to cut costs. They also need to relook their network and operating structure. They also need to reduce corruption - I remember reading about their former CEO using the airline like his own personal transport and logistics company!

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1 hour ago, flee said:

Like most airlines, new widebody aircraft are now not needed unless international travel is opened up.

GA has too many aircraft types, they need to simplify the fleet to cut costs. They also need to relook their network and operating structure. They also need to reduce corruption - I remember reading about their former CEO using the airline like his own personal transport and logistics company!

Yes, the same former CEO who revamped GA to be then-new 5-stars airlines is the one who is in jail now for corruption. All their fleet purchases are muddled with corruption. ATR 72, A330ceo/neo, CRJ-1000. Let's hope their B737 MAX and B77W purchases were clean. Stranger things have had happened, this maybe political vendetta as well.

If they remove their F class, they will definitely lose their 5 Stars airline accolade, unless Skytrash revise their ranking methodology.

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