Airlines and Hotels in Indonesia Need 2 Years to Recover Post Pandemic

Garuda Indonesia amidst pandemic

Indonesian national airline carrier Garuda Indonesia has faced several woes since the start of the Coronavirus pandemic.

It took the beating from national and international restrictions that caused the drop in daily flights.

The company had to ground 70 percent of its fleet although Garuda Indonesia has used the time to carry out maintenance checks of its planes.

In May, the Indonesian government allocated Rp 8.5 trillion in working capital guarantee to the struggling airline.

Garuda Indonesia managed to garner the approval from bondholders to extend its $500 million Sukuk (Islamic bond) for an additional three years. The bond was originally due on 3 June; Sukuk is a sharia-compliant bond.

The news has been warmly received as publicly listed Garuda Indonesia struggles to fulfill its debt obligations post pandemic.

Among the measures that Garuda Indonesia took to stay afloat amidst the Coronavirus pandemic are cutting employees' salaries and laying off workers and pilots. (Writer: Mutia Fauzia | Editor: Yoga Sukmana) 

Source: https://money.kompas.com/read/2020/06/09/203400526/dua-industri-ini-dinilai-butuh-dua-tahun-untuk-pulih-dari-dampak-pandemi-covid