JAKARTA (TheInsiderStories) – Public listed airline operator PT Garuda Indonesia Tbk (IDX: GIAA) announced to redeem its rupiah denominated bond worth Rp2 trillion (US$139.86 million), its CEO Pahala N. Mansury said in a press statement on Thursday (05/07).
This bond has five years maturity (2013-2018) with term of full payment in maturity date and yield rate 9.25 percent per annum. Last 2013, Garuda issue bond in conjunction with corporate expansion programs as well as fleet revitalization. 80 percent of the fund is channeled into down payment for the new airline and the rest for rental fee.
Mansyuri said, Garuda is ready to become an integrated airline service in the next few years. Having been 70 years in the aviation industry, the company currently owned its maintenance, repair and overhaul (MRO) business unit PT Garuda Maintenance Facility Aeroasia Tbk (IDX: GMFI), ground handling business unit PT Gapura Angkasa, catering business unit PT Aero Wisata, PT Aero Systems Indonesia, PT Garuda Indonesia Holiday France, PT Sabre Travel Network Indonesia, as well as low cost carrier Citilink.
Garuda has allocated billions dollar funds to expand its presence in the industry. The company is focus on reducing their loss exposed by exchange rate volatility.
The company vision become fully integrated airline service is expected to move Garuda Indonesia’s operational and financial performance into positive territory in the next two years.
The flag-carrier has vowed to return to profitability this year, on anticipated aviation industry improvement, after recording losses last year. Mansury hoped, this year Garuda to book a net profit of $8.7 million and on revenues of $4.9 billion.
In 2017, the state-owned company booked net losses of $213.4 million compared to a net profit of $9.4 million the previous year, driven by higher expenses, in particular aviation fuel, along with extraordinary expenses, which amounted to $145.8 million, including settling previous debts under the tax amnesty program.
Meanwhile, revenues reached $4.2 billion, up 8.1 per cent from the $3.9 billion reported the previous year.
In addition, the company managed to renegotiate airline lease fees with lessors last year, which resulted in a 25-percent reduction. The company currently operates a fleet of 202 aircraft with an average age of five years, of which 144 units are operated by Garuda Indonesia and 58 by its unit PT Citilink Indonesia.
As end of first quarter-2018 Garuda improves their loses by 36,5 percent into $64,3 million. The company’s revenues also rose 7.9 percent to $983 million, from previous period of $910.7 million.
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