GIAA - PT. Garuda Indonesia (Persero) Tbk

Rp 210

+10 (+4,76%)

JAKARTA. PT Garuda Indonesia (Persero) Tbk (GIAA) is asking aircraft lessors to provide discounts on aircraft leasing prices that are higher than the market price. The state-owned airline is also negotiating to postpone third-party payments due to financial pressure amid the coronavirus (COVID-19) pandemic.

According to Garuda Indonesia CEO Irfan Setiaputra, the current conditions of the airline industry provide an appropriate opportunity to negotiate skyrocketing leasing prices.

"For example, every month we pay US$1.6 million to lease a 777 (Boeing 777-300ER). We have been in negotiation for awhile, and today we have an opporotunity to negotiate prices because the market price is only US$800,000 per month," said Mr Setiaputra in a virtual meeting with the House of Representatives' Commission VI, Wednesday (29/4).

In addition, Garuda has also postponed payments to third parties including PT Angkasa Pura (Persero), PT Pertamina (Persero), and PT Airnav Indonesia in order to maintain the airline's operational sustainability.

"A problem in Garuda will also affect GMF AeroAsia, Aerofood ACS, Aerotrans, and others. We have almost 25,000 staff in total and we need to sustain Garuda Indonesia as a whole, and as such we have delayed payments to third parties," said Mr Setiaputra. (AM/MS)