Garuda’s Fleet Growth at Risk as Danantara Trims Funding
The carrier has struggled financially since the Covid-19 pandemic.
Photographer: Dimas Ardian/BloombergIndonesia’s sovereign wealth fund Danantara is reducing its financial support for flag carrier PT Garuda Indonesia, putting in doubt the distressed airline’s ability to refresh its fleet.
Garuda will now receive 23.7 trillion rupiah ($1.4 billion) from PT Danantara Asset Management, an arm of the wealth fund, through a private placement, which comprises a cash injection and a loan conversion, according to an exchange filing. The airline was supposed to obtain $1.8 billion under a plan drawn up last month.