Garuda manages to cut costs by US$ 15 million per month

25 February 2021 06:13

JAKARTA . Various efficiency efforts made by PT Garuda Indonesia Tbk. (GIAA) has been successful in saving costs of US$ 15 million per month or US$ 180 million per year. However, the President Director of GIAA emphasized that this step had no impact on operational activities.

GIAA President Director Irfaniaputra explained that his party and the Ministry of BUMN are working together to do various things that have an impact on reducing costs without implicating operational activities. Even though it is doing efficiency, passenger safety is still number one, he said. "Please understand that for prospective passengers, safety is still number one," he said Wednesday (24/2/2021).

Apart from making savings, GIAA also continues to discuss with aircraft lenders or airlines in an effort to obtain a credit restructuring that will automatically reduce costs. GIAA also conducted renegotiation of 12 Bombardier CRJ-1000 aircraft, which were considered to be detrimental to the company when operating and resulted in the unilateral termination of the lease contract. (AM/LM)

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