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Garuda Indonesia to massively cut fleet, focus on Citilink: Sources
The national flag carrier reportedly plans to remove 80 aircraft from its fleet and renegotiate or cancel orders for more than 90, according to aviation news website flightglobal.com.
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Grim times: Garuda Indonesia unveils new livery for its B737-800 NG fleet in October 2020. The COVID-19 pandemic has hit the company hard. (Courtesy of/Garuda Indonesia)
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aruda Indonesia reportedly plans to remove a large number of widebody aircraft from its fleet while retaining dozens of narrowbody aircraft to focus on its low-cost subsidiary Citilink.
The national flag carrier is looking to remove nearly 80 aircraft from its fleet and renegotiate or cancel orders for more than 90, according to a report on aviation news website flightglobal.com quoting aviation data analytics company Cirium.
Cirium reportedly saw a slide from a Garuda Indonesia town hall meeting with lessors on Sep. 7.
“To implement the restructuring of the group’s aircraft lease arrangements and potentially its other debts, the company expects to launch a UK scheme of arrangement,” the slide stated, according to flightglobal.com.
A scheme of arrangement is an agreement between a company and its creditors, commonly used for rescheduling debts alongside insolvency procedures.
Read also: Garuda might get $231 million capital injection for new planes
The report comes after Garuda recently lost an arbitration case against lessors Helice SAS and Atterrissage SAS at the London Court of International Arbitration (LCIA), which ordered the flag carrier to pay outstanding lease.
