JAKARTA - Reports from Indonesia say the government is planning to sell its struggling state airline, Garuda. Kompas newspaper has quoted the minister for state enterprises, Sugiharto, as saying that Garuda is planning an initial public offering in 2009. However, he added the process may be sped up so that investors can enter as early as next year.
High oil prices and competition from other airlines are causing problems for Garuda.
"It's best to start in 2006 as many investors are interested," he said. Garuda is struggling to stay in business amid rising fuel costs and tougher competition. It is also having difficulty servicing debt repayments of $US100 million a year and had to ask foreign creditors to reschedule the annual principle payment on a debt of more than $500,000.
Our correspondent in Jakarta, Peter Cave, says Garuda has also suffered a defection of more than 120 pilots in the past two years after they were lured away by better paying jobs at competing low cost carriers.
There are no reactions on this blog entry yet. Be the first one to give a reaction here!
Log in to write a reaction
You are not logged in to the website. You have to be logged in to write a reaction on this blog entry.
· If you already have an account, please login. · If you have lost your password, please retrieve it. · If you don't have an account yet, you can create one.
ABOUT THIS ENTRY
Add this blog entry to your email, your own blog, MySpace, Facebook, or whatsoever via AddThis:
Login if you want to receive emails for reactions on this blog entry. You will receive an update as soon as a reaction on this blog entry is posted.
JAKARTA - Reports from Indonesia say the government is planning to sell its struggling state airline, Garuda. Kompas newspaper has quoted the minister for state enterprises, Sugiharto, as saying that Garuda is planning an initial public offering in 2009. However, he added the process may be sped up so that investors can enter as early as next year.
