Garuda will allocate $30 million to carry out the second phase of its early retirement scheme this year which covers 1,100 staff, in a bid to reduce costs amid its impending business restructuring. The scheme will be carried out in stages and will be drawn from operational funds each month, Garuda states in a corporate presentation dated 19 August filed to the Indonesia stock exchange. In the presentation, Garuda also revealed that it has developed a plan to reduce liquidity pressure and improve its financial position to ensure business continuity. “The implementation and effectiveness of the management’s plans [to improve] the group’s financial condition will depend on the stakeholders [such as] creditors, lessors, shareholders and regulators agreeing to the negotiations,” it says. The plan will need to account for Garuda’s existing debts, which as of June, amounted to at least Rp70t ($4.8b), and was forecast to increase by Rp1t per month amid the pandemic. Garuda says it has taken steps to “harmonise supply and demand aspects” amid the pandemic, including implementing a hiring freeze, accelerating contract settlement for contract staff, offering early retirement, laying off pilots and salary reductions of up to 50% until the condition of the company improves. At a 13 August annual general meeting of shareholders, the company received approval to lay off two of its eight-member board of directors. Deputy president and CE Dony Oskaria and director of commercial and cargo M Rizal Pahlevi will be “dismissed with honour”.<br/>