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Jakarta, August 19, 2022

Garuda Indonesia, PPA Partner Up to Restore Fleet

Flag-carrier Garuda Indonesia partners with state-asset management firm Perusahaan Pengelola Aset (PPA) in order to restore its existing fleet and grow the number amidst the company’s restructuring program. This comes after the two entities signed an MoU that hoped to increase its flight frequency to broader routes. 

“We support Garuda’s expansion plan to meet the adequacy of its fleet. We are optimistic about the airline’s business prospects in line with the high demand for the domestic market after the pandemic,” said PPA President Director Yadi Jaya Ruchandi in a written statement on August 18.

Yadi considers this cooperation a solution that prioritizes risk management for the challenges faced by airlines due to the depletion of the aircraft fleet. 

“Of course with transparent business processes and good corporate governance,” said Yadi.

Meanwhile, Garuda President Director, Irfan Setiaputra said that this cooperation is the company’s commitment as a national airline. “To accelerate performance recovery and meet the increasing need for flight accessibility,” he said.

The cooperation was carried out in line with the increasing number of air passengers after the Covid-19 pandemic has been deemed to subside. Central Statistics Agency recorded that the number of domestic flight passengers at Indonesia’s five main airports; Soekarno-Hatta, Juanda, Ngurah Rai, Hasanudin, and Polonia, in the first semester of 2022 reached 13.6 million passengers.

This number is up 77 percent compared to the same period last year which was only 7.7 million passengers. The soaring level of people’s mobilization in Indonesia has led to an increasing need for air transportation.

This cooperation between Garuda Indonesia and PPA comes after President Joko “Jokowi” Widodo ordered the Minister of Transportation and the Minister of SOEs to encourage airlines to increase the number of aircraft.