Garuda Indonesia on Early Retirement Offer: A Heavy Step

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Markus Wisnu Murti

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  • A Garuda Indonesia Airbus A330-900neo is painted wearing a face mask at the GMF AeroAsia Hanggar of the Soekarno-Hatta Airport, Tangerang, Banten, Thursday, October 1, 2020. ANTARA/Muhammad Iqbal

    A Garuda Indonesia Airbus A330-900neo is painted wearing a face mask at the GMF AeroAsia Hanggar of the Soekarno-Hatta Airport, Tangerang, Banten, Thursday, October 1, 2020. ANTARA/Muhammad Iqbal

    TEMPO.CO, JakartaNational flag carrier Garuda Indonesia president director Irfan Setiaputra has spoken up about the early retirement plans offered by the management to employees. Irfan said the option was taken as the company’s effort to survive amid the uncertainty in the wake of the COVID-19 pandemic.

    “This is a heavy step that the company must take. However, we must take this option to survive amid the uncertainty of the performance recovery of the aviation industry that has yet to show any light at the end of the tunnel during the COVID-19 pandemic," said Irfan in a written statement on Friday, May 21.

    Irfan explained that the early retirement offer was still in the early stages. Employees who meet the criteria and requirements can retire early. He ensured that all employee rights would be fulfilled in accordance with the regulations.

    Based on the contents of an e-mail received by Tempo, the plan for early retirement was decided in a meeting on Wednesday, May 19, 2021. According to the minutes of the meeting, the company faced potential losses of up to Rp70 trillion. The company had lost more than Rp1 trillion per month.

    Thus, Irfan believed this policy would bring Garuda Indonesia to be healthier and more adaptive in responding to challenges in the new normal era.

    Read: Garuda Indonesia Operates as 'Fully-vaccinated Air Carrier'

    FRANCISCA CHRISTY ROSANA