JAKARTA (Yosefardi) – Flag carrier PT Garuda Indonesia Tbk (GIAA) mulls to propose capital injection by its shareholders amid tight liquidity and critical debt to equity ratio which stood at 1.1 times.
As at June this year, GIAA’s debt totaled US$1.2 billion while its equity reached US$1 billion. Some US$200-300 million debt will mature this year.
GIAA also mulls to do cost efficiency for escaping from the loss due to increasing fuel cost and rupiah depreciation.
It plans to review its order/purchase of new planes and to postpone or close some international flight routes. GIAA will also close flight to Taipei.