JAKARTA (Reuters) – Flag provider Garuda Indonesia ( GIAA.JK) is in talks with Airbus ( AIR.PA) to delay deliveries of four airplane this year, its president stated on Tuesday, as the coronavirus outbreak restricts travel and dampens demand.
FILE PHOTO: A Garuda Indonesia Plane A330-300 plane prepares to land at Soekarno-Hatta airport in Jakarta, December 11,2014 REUTERS/Beawiharta
” This year we need to receive four Airplane planes, however we are negotiating to postpone that,” CEO Irfan Setiaputra stated in a parliamentary hearing.
Garuda has 9 A330 neos on order with Plane that have yet to be delivered, according to the Jet order book, while its low-cost arm Citilink has 25 A320 neos on order.
A Jet spokesperson decrease to comment on the company’s industrial conversation.
Garuda faces financial difficulties after the coronavirus outbreak caused major disturbance to international travel, leading to a 90%drop in passengers volume at Garuda, the airline stated last month.
The business was required to seek maturity extension to its $500 million Islamic bonds that were due in June and look for brand-new government loans.
Garuda, on the other hand, is also reorganizing its aircraft leasing by seeking a lower leasing rate or extending the period, Setiaputra stated, adding that it also looks for to terminate “inappropriate” agreements.
Twelve of its lessors have consented to a restructuring, according to Garuda discussion product in parliament, while six have declined to provide lease deferral. It is still in negotiations with 13 other lessors.
” Today there are a variety of lessors who grounded our aircrafts since our incapability to pay,” Setiaputra said.
( This story corrects paragraph 6 to say looked for maturity extension to Islamic bonds and brand-new federal government loans.)
Reporting by Bernadette Christina Munthe; Extra reporting by Jamie Freed; Composing by Fransiska Nangoy; Modifying by Martin Petty
Reuters.
