Indonesia is finalizing a US$1b financial bailout plan for its flag carrier to help it stave off a debt default after the coronavirus crisis forced the airline to ground most of its planes. The rescue plan includes a proposal to restructure PT Garuda Indonesia's US$500m sukuk due next month and arrange new bridge loans of as much as US$500m to meet working capital requirements for three to six months, Deputy State-Owned Enterprises Minister Kartika Wirjoatmodjo said. Garuda will table the sukuk proposal to investors on May 18 that will include an option to extend the maturity of the securities by three years or a staggered repayment, Wirjoatmodjo said. Last month, the carrier asked bondholders to begin talks with its financial adviser, citing an "extremely challenging environment for airlines" following the virus outbreak.The government help in tiding over the financial crunch should sooth investor concerns about Garuda's ability to survive the pandemic that's forced airlines worldwide to seek state bailouts and emergency funding. Garuda, in which Indonesia's government owns almost 61%, has already cut employee salaries and renegotiated aircraft lease agreements to tackle a slump in travel sparked by the pandemic. "Garuda remains a good company with bright prospects," said Wirjoatmodjo, a former chief executive of state-owned PT Bank Mandiri. "Its business will remain robust after the outbreak ends."<br/>
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The Italian government is assessing several candidates to head a new state-controlled company to run failed carrier Alitalia, newspaper Il Sole 24 Ore reported. A leading candidate is former Fiat Chrysler Automobiles NV executive Alfredo Altavilla, the newspaper said, adding that no decision has been taken. The government is also considering switching Alitalia’s partnership to Lufthansa and Star Alliance, abandoning a current tie-up with Delta and SkyTeam, the paper said. Italy has been under a national lockdown since early March to counter the spread of the coronavirus. Flight cancellations across Europe have badly hurt airlines as revenue craters. Alitalia was seeking help before the crisis and has already cost the taxpayer more than E2b.<br/>
Czech Airlines will resume part of its operations on May 18 after a six-week interruption because of the coronavirus pandemic, the airline said on Saturday. Flights to Amsterdam, Frankfurt, Paris and Stockholm will be among those reopened in the first wave. On May 24, the route to Kiev will reopen, followed by Odessa and Bucharest on May 25, CSA said. Passengers will be required to wear face masks during the entire flight and a distance of 2 metres from person to person will be observed. The cabin will undergo disinfection before and after each flight, CSA said.<br/>