The government strongly suggests rebranding Garuda Indonesia Airlines. This is in response to PT Garuda Indonesia’s threat with bankruptcy due to the problem of leasing aircraft to lessors.
This issue rises up due to a lawsuit for Postponement of Debt Payment Obligations (PKPU). The lawsuit was issued by PT My Indo Airlines to the Central Jakarta District Court (07/9/2021). This was filed due to Garuda Indonesia being in arrears in paying a number of obligations to My Indo Airlines. The Panel of Judges stated that were rejected it.
Recently, Garuda Indonesia was again threatened with bankruptcy due to the PKPU application by PT Mitra Buana Korporindo. It was submitted to the Commercial Court of the Central Jakarta District (22/10/2021). This case is registered with case number 425/Pdt.Sus-PKPU/2021/PN Niaga Jkt .pst.
3 Reasons why Garuda indonesia Threatened to face bankruptcy
Former Commissioner of PT Garuda Indonesia (Persero), Peter Gontha, revealed a number of problems that made Garuda Indonesia lose money and even threaten to go bankrupt.
- The pressure to sign a $3 billion contract for 50 Boeing 737 Max aircraft in 2013/2014.
According to Peter, at that time he was forced to sign a contract because he was only given 1×24 hours. Unfortunately, Boeing 737 Max experienced problems with the emergence of cases of the crash of the Lion Air JT 610 and Ethiopian Airlines ET 302 planes. Garuda was already bound with a procurement contract for 50 aircraft. This contract cannot be canceled for whatever reason.
- The alleged mark-up for the price of Garuda flight rental fees.
Peter highlighted the issue of the Boeing 777 Garuda. According to him, the average rental price in the market is 750 thousand US dollars per month. However, starting on the first day, Garuda will pay double the 1.4 million US dollars per month.
- Redundant plane rental.
On average, Garuda Indonesia loses more than 30 million US dollars (US) per year. This is because of using the CRJ 1000 aircraft.
The Ministry Of State-Owned Enterprises indicated that there was bribery behind Garuda Indonesia’s policy of renting the Bombardier CRJ 1000.
