Indonesian lawmakers debate future of Garuda

Indonesian lawmakers are divided over whether to resort to folding flag carrier Garuda Indonesia should ongoing restructuring negotiations fall through. Indonesia’s House of Representatives member Evita Nursanty voiced support for the Ministry of State Owned Enterprises’ proposed option to close Garuda should negotiations fail, while preparing Pelita Air Service or other airlines to replace it, according to a 26 October statement in Bahasa Indonesia on Indonesia’s parliamentary website. Nursanty states: “If the negotiations are tough… there is no other choice but [for] the Ministry of SOEs [to] prepare Pelita Air or other airlines as replacements.” She said the move would be “in anticipation of the very serious situation.. [if Garuda] can no longer [negotiate] with lessors, lenders and global sukuk holders”. Nursanty also said that the House of Representatives “had confirmed that other options that require state capital participation [via local financier Permodalan Nasional Madani] would not be possible”. “I would certainly like… if Garuda Indonesia remained, but if… lessors and lenders still don’t want to negotiate, then just close it,” she added. She highlights the USA as an example of a country in which commercial flights are “fully managed by the private sector”, adding that “a country can replace its national carrier and even eliminate it [and cooperate] with international airlines for international flight schedules”.<br/>