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Jakarta Post

Garuda told to break lease for 12 CRJ1000 aircraft

  • Norman Harsono

    Jakarta

PREMIUM
Jakarta   /   Wed, February 17 2021   /  01:00 am
Technicians of Garuda Maintenance Facility (GMF) Aero Asia check the condition of a Garuda Indonesia's Airbus A330-300 plane at a Soekarno-Hatta Airport hangar.(JP/Jerry Adiguna)

The State-Owned Enterprises (SOEs) Ministry has ordered Garuda Indonesia to terminate its lease over one dozen Bombardier CRJ1000 NextGen planes and and return the aircraft amid the flag carrier’s ailing finances and a corruption probe that has implicated the Canadian aircraft manufacturer. SOEs Minister Erick Thohir said on Feb. 10 that Garuda was negotiating with the aircraft's lessor, Denmark’s Nordic Aviation Capital (NAC), on early termination of its contract, slated to end in 2027. Erick said the 12 leased CRJ1000s represented a major cost-cutting opportunity because Garuda found the aircraft especially unprofitable during the COVID-19 pandemic and because of the ongoing bribery investigation into the aircraft's procurement. “There are two issues. First is the legal case. That is clear. Then there is the force majeur. This COVID-19 situa...