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Ireland’s AerCap withdraws lawsuit against Garuda Indonesia
Garuda Indonesia has been released from the insolvency lawsuit case filed by Dublin-based aircraft leasing firm AerCap Ireland Ltd. as the flag carrier struggles with insolvency.
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This picture taken at Soekarno-Hatta International airport in Tangerang, Banten, on Nov. 3, 2018 shows two planes from Indonesia's national airline Garuda. (AFP/Adek Berry)
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ublin-based aircraft-leasing firm AerCap Ireland Ltd. has withdrawn its lawsuit against flag carrier Garuda Indonesia after the latter reportedly failed to pay aircraft leases.
Garuda wrote in a statement on July 30 that the two parties had signed a global side letter agreement on July 28 that stipulates Garuda would need to relocate and fly nine leased Boeing 737 800NG aircraft in certain approved locations in return for AerCap withdrawing the lawsuit.
“The company will make sure that the follow-up from this agreement with AerCap will be conducted while upholding good corporate governance principles,” reads the statement filed with the Indonesia Stock Exchange (IDX) on July 30.
He went on to say that the airline would continue its operations normally despite the ongoing adjustments.
“We are committed to optimizing the availability of safe and comfortable flights […] as well as cargo services for the nation’s economy,” reads the statement.
The publicly listed air carrier trading under GIAA was faced with an insolvency lawsuit from AerCap, which filed the case on June 4 with the Supreme Court of New South Wales in Australia.
Garuda had been in negotiation with AerCap “to reach a commercial deal and restructure the contract outside the court,” the airline stated on its financial report released in July.
