Jakarta, October 25 (EFE) .- The national airline Garuda Indonesia is on the verge of bankruptcy and is plagued by debt after months of financial difficulties due to the effects of the Covid-19 pandemic, local media reported on Monday.
According to the Jakarta Globe newspaper, the government is prepared for all sorts of contingencies, including liquidating the company and replacing it with state charter company Pelita Air Service if bailout plans fail.
“If we reach a dead end, we will close Garuda because it is impossible to inject more government money given the enormous debt burden of the company,” said the deputy minister for public companies of the news agency Antara Kartiko Wirjoatmodjo.
The company is trying to restructure the debt through agreements with its creditors, but even if it does manage to stabilize its financial situation, the government is banning long-haul flights from operating in the future.
The company, which employs more than 7,000 people, has $ 4.9 billion in debt for June according to its latest results, up about $ 70 million per month due to late loan disbursements.
(c) EFE Agency
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