JAKARTA (Reuters) – Flag provider Garuda Indonesia ( GIAA.JK) is in talks with Airplane ( AIR.PA) to delay shipments of four airplane this year, its chief executive said on Tuesday, as the coronavirus outbreak restricts travel and moistens need.
SUBMIT PICTURE: A Garuda Indonesia Airbus A330-300 airplane prepares to land at Soekarno-Hatta airport in Jakarta, December 11,2014 REUTERS/Beawiharta
” This year we need to receive four Airplane aircrafts, however we are negotiating to postpone that,” CEO Irfan Setiaputra said in a parliamentary hearing.
Garuda has nine A330 neos on order with Jet that have yet to be provided, according to the Jet order book, while its affordable arm Citilink has 25 A320 neos on order.
A Jet representative decrease to comment on the business’s commercial conversation.
Garuda faces financial problems after the coronavirus outbreak caused major disturbance to global travel, leading to a 90%drop in passengers volume at Garuda, the airline company said last month.
The business was required to look for maturity extension to its $500 million Islamic bonds that were due in June and look for new government loans.
Garuda, meanwhile, is likewise restructuring its airplane leasing by seeking a lower leasing price or extending the period, Setiaputra stated, adding that it also seeks to end “unsuitable” agreements.
Twelve of its lessors have consented to a restructuring, according to Garuda presentation material in parliament, while 6 have actually declined to offer lease deferment. It is still in negotiations with 13 other lessors.
” Today there are a variety of lessors who grounded our airplanes due to the fact that our incapability to pay,” Setiaputra said.
( This story fixes paragraph 6 to say looked for maturity extension to Islamic bonds and brand-new federal government loans.)
Reporting by Bernadette Christina Munthe; Additional reporting by Jamie Freed; Writing by Fransiska Nangoy; Modifying by Martin Petty
Reuters.
