Garuda Plans to Cancel Jet Orders Worth Billions of Dollars
(Bloomberg) -- Distressed flag carrier Garuda Indonesia plans to cancel billions of dollars worth of aircraft orders from Airbus SE and Boeing Co. as part of a court-supervised debt restructuring to slash its debt and weather a slump in air travel due to the pandemic.
The state-owned carrier wants to cancel its order for nine A330-900 jets and four A330-800s, Finance Director Prasetio said following a meeting with creditors in Jakarta on Tuesday. The order is worth more than $1 billion, based on prices provided by aircraft appraiser Avitas Inc.
Garuda is also using the court process to move forward with the cancellation of the remaining 49 Boeing 737 Max 8 it has on order, Prasetio said. The carrier has said since as early as 2019 that it would walk away from the deal following two fatal crashes and the global grounding of the single-aisle jet. It only took one Max from its original order for 50.Â
Garuda plans to keep its order for 25 A320 aircraft, Prasetio said.
An Airbus spokesman said the manufacturer couldn't comment on Garuda's ongoing restructuring process. A Boeing representative didn't immediately respond to a request for comment.Â
Garuda aims to cut its debt to about $3.4 billion from close to $10 billion and renegotiate terms with aircraft lessors.
| More: |
|---|
| Garuda Aims to Slash Fleet, Renegotiate Orders in Restructuring |
| Lion Air Flies First 737 Max Since Indonesia Cleared Boeing Jet |
©2022 Bloomberg L.P.
-
Signature Play: The Classic Cocktail Is Dead. Or Is It?
Classic cocktails are disappearing from India's cocktail menus. But they're still being ordered, taught to bartenders and borrowed from. So, who's really having the last drink?
-
A New Samvat Wishlist: Inclusive Prosperity And Human Development
India has strengthened its economic foundations through infrastructure, digital access and enterprise. Its next growth chapter must deepen productivity, create better livelihoods and widen participation in prosperity.
-
Love, Sex Aur Dhokha: The Audacious Plot To Spy On Jensen Huang
A Taipei dinner, a Singapore chip buyer and a suspected Chinese asset: inside the alleged spy operation that got close to NVIDIA's Jensen Huang.
-
Ten Things I Learnt This Samvat
Patience can be a trap. Cheap stocks can stay cheap. Leverage can wipe you out. What did Samvat 2082 teach us? Niraj Shah writes on 10 lessons from the year gone by.
-
Talking Points This Week: Tech Nerves, FII Buying, And A Faraway Banking Shock
The global markets are not shining this Diwali. The exception in the large markets is, India.
-
Midterm Rally Lasted A Day. The Hard Reality Of A Divided US May Last Two Years | Opinion
Between a contested AI boom, a debt ceiling that arrives in 2027 and a president with every incentive to act alone, the next two years may prove more volatile than the first day's rally suggests.
-
Blue Wave Will Derail the AI Trade but Won't Dismantle the AI Era | Unhedged Position
The Democrats' sweep of the US Congress will see politics collide with economic forces both over the long and short term.
-
It's Time To Take The GST Council's Bet On Trust Global
Payment records can prove India's services exports, and clear, proportionate rules can bring foreign digital sellers into the tax net.
-
Opinion | India at 38: From Innovation Overperformer to Innovation Powerhouse
India now has 453 VC-backed deep science startups, 18 of them late-stage, after 117 percent growth since 2020. Laurus Labs, at USD 9.3 billion, is the most valuable deep science company in any middle-income economy outside China.
