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The Indonesian House of Representatives (DPR RI) predicts that the aviation industry will experience a large impact due to the ongoing COVID-19 pandemic.
According to Member of the House of Representatives Commission VI, Deddy Yevri Sitorus in his press release said for airlines, the impact of the corona virus was far more devastating compared to the events of 9/11 and the 2008 global crisis when combined, there were practically no airlines operating at this time in the world.
Deddy revealed, based on the data he obtained, the airlines in the world would lose revenue of US$252 billion until mid-2020.
At present, said Deddy, all airlines in the world carry out a restructuring program, both involving the government and not.
For example, said Deddy, Singapore Airlines, which a few weeks ago received fresh funds of 19 billion Singapore dollars and 5.3 billion Singapore dollars from the issuance of new shares, plus 9.7 billion Singapore dollars, and loans from DBS 4 billion Singapore dollars.
Similar assistance was received by Qantas, who received 1.1 billion Australian dollars from the kangaroo government.
“What about Garuda Indonesia? Can Garuda Airlines survive in this crisis? Garuda Airlines is like a person who fell on a ladder. Until now there has not been a sound program to save Garuda Indonesia from the COVID-19 crisis and recovery when the pandemic passed,” he noted.
He added, we know that Garuda Indonesia stopped its operations due to the implementation of Large-Scale Social Restrictions (PSBB) and Garuda had to pay debts due June 2020.
Deddy also explained, Garuda was the epicenter of the aviation industry in Indonesia, so saving Garuda was seen as very important, as well as saving the industry.
Hundreds of thousands of workers in the aviation industry, continued Deddy, must be rescued from ground handling, shipping services, airports, and others.
According to Deddy, saving Garuda Indonesia must go through a comprehensive and in-depth restructuring, including restructuring operations, restructuring aspects of capital adequacy, restructuring the business model, and regulating the company’s cash flow.
“Garuda must also prepare a post-COVID-19 recovery program, starting from the recovery demand scenario, the market structure scenario, until the time is normal. Because the impact of the corona crisis can be 3-5 years, Garuda and the government must work together to save the national aviation industry,” he concluded. [antaranews/photo special]
