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THE INDONESIA’S government as the holder and shareholder of PT Garuda Indonesia Tbk. as asked to immediately intervene to face the demand for payment of the Arbitration Award decision by the London Court of International Arbitration (LCIA).
According to aviation observer Alvin Lie, said that I ensured that the decision would burden Garuda’s finances. The reason is, the value of the payment obligation is not small or around IDR12.8 trillion. What’s more, considering that the state-owned airline’s financial condition is still battered and currently undergoing restructuring.
Alvin believes that there is no other option other than an injection of funds from the government to pay off the obligations borne by the issuer codenamed GIAA. I don’t know where to find the money to pay for it. Owners/shareholders must step in. Immediate injection of fresh funds. It is impossible for Garuda to add more debt to pay its obligations,” he said, Monday (9/13).
Meanwhile, Garuda Indonesia President Director Irfan Setiaputra has coordinated with the appointed attorney to consider further steps that the company can take.
Regarding the arbitration decision, Irfan said that he is still in intensive communication with Goshawk. The goal is to explore the best agreement in an effort to settle the Company’s business obligations outside of the ongoing legal process.
“One of these efforts is carried out by considering the possibility of exploring restructuring schemes and other alternative supporting strategies,” he explained.
So far, the airline with this type of full-service claims that the communication is well established. In fact, the company is quite optimistic that the assessment can produce the best agreement for all parties by paying attention to aspects of business continuity amidst the pressures of the aviation industry’s performance during this pandemic.
The Company also ensures that all aspects of flight operational activities continue as normal. Garuda Indonesia will optimize the availability of safe, comfortable and healthy flight services for all passengers through the implementation of health protocols in all lines of operations. [bisnis.com/photo special]
