NAC Responds to Garuda Indonesia's Bombardier Lease Termination



Laila Afifa

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  • TEMPO.CO, JakartaAircraft leasing firm Nordic Aviation Capital (NAC) on Thursday, February 11, responded to news about Garuda Indonesia which announced it will no longer use the Bombardier CRJ1000 it had leased from NAC. 

    The Indonesian flag-carrier in defense said that one of the reasons for the termination was due to the investigation on the alleged bribery related to the Bombardier plane, and that Garuda wishes not to be involved. 

    However, NAC strongly denied that it was involved in the investigation of alleged bribery involving the Canadian Industrial group Bombardier under the scrutiny of the UK's Serious Fraud Office (SFO).

    "For the avoidance of doubt, NAC is not a party to any investigation into the selection of the aircraft by Garuda in 2012 and there has been no allegation of any wrongdoing on the part of NAC in relation to the placement of the aircraft,” NAC said in the statement on Wednesday. 

    The contract between Garuda and NAC for leasing 12 CRJ1000s was established in 2012 and was supposed to last until 2027. 

    Another reason that has driven the termination was due to the financial losses, mainly at the operational costs, due to the pandemic. 

    Reuters reported on February 11, that NAC said it had not yet received a termination notice from Garuda Indonesia and therefore the lease agreements remained in full force, and it expected the Indonesian airliner to continue to honor its contractual commitments.

    “While NAC is sympathetic to the commercial difficulties of Garuda, it is confident of its position and absolutely determined to protect its commercial interest,” the lessor said. 

    Read: Garuda Indonesia Cuts Ties with Bombardier after Heated Negotiations