Garuda Indonesia says in talks with banks, won’t default on debt

Garuda Indonesia says in talks with banks, won’t default on debt

Workers clean the body of a Garuda Indonesia Airbus A320 aircraft inside Hangar 4 of PT Garuda Maintenance Facility (GMF) Aero Asia at Soekarno-Hatta airport in Jakarta.

PT Garuda Indonesia is in talks with several banks about refinancing and won’t default on its $500 million notes due June 3 despite challenges presented by the coronavirus, the airline’s Chief Executive Officer Irfan Setiaputra said.

Like airlines around the world, the Indonesian flag carrier has been deeply damaged by the virus and its impact on travel. Setiaputra said the outbreak has hit Garuda’s international market hard, with entry restrictions to Saudi Arabia a particular blow as the carrier typically flies more than half a million Indonesian pilgrims to Mecca and Medina every year. The airline has also cut Singapore flights to three a day from 10.

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