Garuda ‘accelerates’ early lease returns | News | Airfinance Journal

Garuda ‘accelerates’ early lease returns

Indonesian flag carrier Garuda Indonesia has confirmed plans to return more aircraft ahead of their lease end dates.

“In line with intensive efforts to restore business performance, the national airline Garuda Indonesia is accelerating the early return of aircraft that have not yet matured rental periods. One of these strategic steps was marked by the return of two B737-800 NG to one of the aircraft lessors ,” Garuda stated in a regulatory filing.

“The acceleration of the return is carried out after a mutual agreement between Garuda Indonesia and the lessor of the aircraft, where one of the conditions for returning the plane is to change the registration code.

Currently, we are also in continuous communication with other aircraft lessors, of course with a view to fulfilling and prioritizing the legal and compliance aspects that apply,” Garuda president and chief executive Irfan Setiaputra said.

Earlier this week, Garuda confirmed that a big majority of its fleet is not operational.

Of the airline’s 142 mainline aircraft, 53 units are in operation and 39 aircraft are in maintenance.

The flag carrier did not specify the status of the remaining aircraft but stressed that it was continuing its negotiations with lessors and suppliers as part of a larger restructuring.

Airfinance Journal previously reported that many of Garuda’s aircraft remained on the ground owing to grounding notices issued by their lessor owners over lease payment defaults.

Garuda said that 136 of its 142 mainline aircraft are leased. The exceptions are six Airbus A330-300s.

Transaction SnapshotGaruda Indonesia | Credit facility | 10-20 | IDR1tr

Financial Close:
$67.92m USD
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