JAKARTA (Yosefardi) – Flag carrier PT Garuda Indonesia Tbk (GIAA) has cut its capital expenditure (capex) by US$70 million, equivalent Rp875 billion, and decided to postpone new order for 9 units of aircraft. The airline would only take 15 new aircrafts this year.
I Gusti Ngurah Askhara Danadiputra, GIAA’s finance director, said the airline opts to do on cost efficiency, mainly on fuel and early terminations.
GIAA allocates capex of US$130 million for this year, funded by its internal cash. The airline booked net loss of US$219.54 million in nine months of 2014, ballooned 1363% from the corresponding period of 2014. Revenues grew by 5.1% to US$2.8 billion from previous US$2.66 billion.