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Garuda Indonesia Needs Rp2.7tn Loan

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12 December 2017 20:28 WIB

A mechanic is silhouetted as he performs maintenance work on a plane at Hangar 4 of Garuda Maintenance Facility AeroAsia, the maintenance and repair unit of Indonesian flag carrier Garuda Indonesia in Tangerang, Oct. 9, 2017. AP

TEMPO.CO, Jakarta - State airline Garuda Indonesia needs a loan of US$200 million or approximately Rp2.7 trillion to increase its capital expenditure next year. President Director Pahala Mansury said the loan could come from either banks or the capital market.

According to Pahala, the airline needs a capex of Rp3 trillion in 2018. The funds will be used for aircraft maintenance, which the company will focus on next year. Garuda has also decided to postpone adding its fleet by purchasing new aircraft.

Read: Mount Agung Eruption: Garuda Indonesia Cancels 88 Flights

"There is no significant increase in next year capex, we will focus more on aircraft maintenance using our own cash," he told Antara, last week.

According to Pahala, Garuda is targeting to book US$3.2 billion in revenues. This year's revenue contribution is split between domestic and international flights by 52 percent and 47 percent.

For the year-end the end of the year, Garuda estimates a 15-percent passengers' increase.  

To address passengers' surge, he said, the Transportation Ministry's director of air transport Maria Kristi Endah Murni has issued additional 1,200 permit flights.

"The airlines that filed for these additional flights are Garuda Indonesia, Sriwijaya, Nam, and Trigana," he said.

FERY F.



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