Garuda Indonesia files for bankruptcy protection and debt restructuring

Indonesian national carrier Garuda Indonesia has decided to file for Chapter 15 bankruptcy protection in the US as it looks to turn its attention to future stability.  The move comes after its court-supervised debt restructuring in July. According to Reuters however,  the carrier's restructuring agreement is currently being challenged in the country's Supreme Court by Greylag Goose Leasing and no decision has been made so far. According to a report on The Straits Times, Garuda's total debt now amounts to roughly US$5.1 billion and reviving the national carrier is a priority for the government.

In November last year, Singapore Airlines (SIA) and Garuda Indonesia built on their long-standing partnership with a new wide-ranging commercial tie-up that will offer travellers with more alternatives and a better travel experience. The scope of the agreement includes the potential alignment of frequent flyer programmes, joint marketing activities, as well as initiatives to promote inbound tourism into Indonesia. Both parties will also commit to finding new growth opportunities in the air freight segment, as well as cooperation in maintenance, repair, and overhaul activities.

This came a year after Garuda Indonesia reportedly laid off 181 pilots as part of its cost-cutting measures, according to CNN Indonesia. The chairperson of the Garuda Pilots Association (APG) Capt. Bintang Muzaini, those impacted include senior pilots with vast flight experience and was not limited to new or junior pilots. He also said that the association has "objections" to Garuda's decision, as the pilots were "eligible to fly" and further support the carrier's operations resumption. 

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