World

Indonesia's national flag carrier to drastically cut its fleet

Garuda Airlines - Indonesia's national flag carrier - is reported to plan to cut a large number of wide-body aircraft, while retaining dozens of narrow-body aircraft to focus on its low-cost subsidiary Citilinks.
Indonesia's national flag carrier to drastically cut its fleet ảnh 1Illustrative image (Photo: AFP/VNA)
Jakarta (VNA) - Garuda Airlines - Indonesia's national flag carrier - is reported to plan to cut a large number of wide-body aircraft,while retaining dozens of narrow-body aircraft to focus on its low-cost subsidiary Citilinks.

The Flightglobal.com website cited aviation data analytics company Cirium as saying that Garuda is looking to cutnearly 80 planes from its fleet and renegotiate or cancel orders for morethan 90 others. According to the source, Garuda is expected to launch a settlement plan in order to carry out therestructuring of the group's aircraft lease agreements as well as otherdebts.

The information was announced after Garuda lost the lawsuit for the payment of aircraft rental fees againsttwo aircraft leasing companies Helice SAS and Atterrissage SAS at the LondonCourt of International Arbitration (LCIA), in which the court ordered the airlineto pay the outstanding rent.

In the first half of 2021, Garuda continued to incur a loss of 12.870billion Rupiah (902 million USD), up 25 percent year-on-year due to theprolonged travel restrictions. In its latest financial report, Garuda saidits revenue fell 24 percent year-on-year to 696.8 million USD, of whichpassenger revenue nearly halved to 375.3 million USD.

In order to solve the problem, Garuda has implemented a number ofcost-cutting measures, including renegotiating aircraft leases, adjustingflight routes and launching an early retirement programme, thereby helping toreduce operating costs by 15.9 percent to 1.3 billion USD in the first halfof this year./.
VNA
#indonesia #national airline #Garuda #restructuring #Vietnam #Vietnamplus #Vietnam News Agency Indonesia
Follow VietnamPlus

Related News

Indonesia's trade surplus hits record high

Indonesia's trade surplus hits record high

Indonesia posted a trade surplus of 4.74 billion USD in August 2021, breaking the record of 4.64 billion USD in December 2006, the Central Statistics Office (BPS) has said.

See more

President Prabowo Subianto signs an inscription at the inauguration of PT VKTR Teknologi Mobilitas' electric commercial vehicle assembly plant in Magelang, Central Java, on Thursday, April 9, 2026. (Photo: Antara)

Indonesia targets ending fuel imports within three years

In addition to electrifying power plants, the Indonesian government is promoting electric vehicles and the utilisation of other renewable energy sources. Solutions include processing palm oil and used cooking oil into aviation fuel to further reduce reliance on fossil fuels.

A groundbreaking ceremony for Indonesia's first melamine project, invested by PT GEABH Joint Technology, is held in the Gresik Special Economic Zone, East Java Province, Indonesia, April 8 (Photo: Xinhua)

Indonesia develops strategic chemical industry

Indonesia's first melamine plant in the Gresik Special Economic Zone is seen as a strategic step to boost the development of the country’s chemical industry and enhance domestic value creation.

Illustrative image (Photo: thevibes.com)

Malaysia leads Southeast Asia in global investment appeal

The latest 2026 Global Opportunity Index (GOI) report by the Milken Institute ranked Malaysia 23rd globally, the highest among developing Southeast Asian economies, underpinned by strong institutional quality and solid economic fundamentals.

YouTube logo on a cellphone (Photo: ANTARA)

Indonesia warns Google over non-compliance with child protection rules

According to the results of an inspection conducted on April 7, YouTube has not fully fulfilled its obligations under Indonesian Government Regulation No. 17/2025 (PP Tunas), which took effect on March 28 and requires digital platforms to implement strict governance measures to protect underage users. The platform has also shown no indication of complying with the rules in the near future.

The Strait of Hormuz is the world's most important oil transit choke-point. (Photo: Reuters)

Malaysia reliant on Hormuz Strait for oil supply

Data from the Malaysian Finance Ministry shows that domestic oil consumption stands at about 700,000 barrels per day, nearly double Malaysia’s crude oil production of around 350,000 barrels daily.

President of the Olympic Council of Malaysia (OCM) Mohamad Norza Zakaria speaks to media (Photo: Bernama)

Malaysia to tighten doping controls at 2027 SEA Games

The adoption of the World Anti-Doping Code aims to ensure that the 2027 SEA Games fully comply with the World Anti-Doping Agency (WADA) standards, thereby enhancing the transparency and international standing of the Games.

Vietnamese Ambassador to Austria Vu Le Thai Hoang (Photo: VNA)

ASEAN, GRULAC strengthen multilateral cooperation

Vietnamese Ambassador to Austria Vu Le Thai Hoang emphasised the value of the dialogue mechanism in fostering coordination among developing countries, while highlighting the need to enhance transparency and improve the efficiency of resource allocation and utilisation across United Nations activities.

Senior officials from 11 ASEAN member states at the meeting (Photo: VNA)

ASEAN senior officials meet ahead of 48th summit

At the meeting, participants reviewed the implementation of agreed commitments and cooperation priorities, preparations for the 48th ASEAN Summit scheduled for this May, and discussed measures to strengthen unity and cooperation amid an increasingly complex and challenging global environment.