Ridha Aditya Nugraha and Wouter Dewulf (The Jakarta Post)
PREMIUM
Jakarta/Antwerp ●
Wed, December 29 2021
The “perfect storm” affecting Garuda Indonesia is not over yet. The toxic combination of a historically heavy overhead and high fleet lease charges, intense domestic and international competition and the current COVID-19 pandemic is a bridge too far for the company.
The situation seems to get bleaker over time. The latest Garuda Indonesia situation, in which it holds a temporary suspension of debt payment (PKPU), has led to an arduous contract renegotiation process with foreign lessors. The current status quo will not change without substantial restructuring and…