Close
Bali Discovery Tours: Homepage
Bali Hotels, Bali Villas and Bali News from balidiscovery.com
Home Bali Contact Bali Practicalities Bali News Bali Services Bali Transportation Bali Sports Bali Excursions Bali Villas Bali Hotels
Home · News · Garuda Grows Increasingly Strapped for Cash
Bali Hotels, Bali Villas and Bali News from balidiscovery.com
Bali Hotels
Bali Villas
Special Deals!
Packages
MICE Handling
Bali Excursions
Culinary - Dining
Guided Tour
Bali Spas
Bali Sports
Diving
Golf
Bali Transportation
Car Rental - Selft Drive
Private Jet Charter
Bali News
Bali Services
Bali Practicalities
Bali Contact
Bali Career
Home
 
Bali Update
Subscribe to our free weekly newsletter!
 
PATA header
PATA Gold Award 2007
Bali Update
PATA Gold Award Winner 2007
 
Bali Contact
Bali Discovery Tours
Komplek Pertokoan
Sanur Raya No. 27
Jl. By Pass Ngurah Rai,
Sanur, Bali, Indonesia

Tel:
++62 361 286 283

Fax:
++62 361 286 284

U.S.A. Fax:(toll free)
1-800-506-8633

U.K. Fax:
++44-20-7000-1235

Australian Fax:
++61-2-94750419

24h:
++62 812 3819724

Bali Discovery

SITE PATA ASITA
Bali News

Garuda Grows Increasingly Strapped for Cash

Airline's Massive Debt Further Plagued by Tight Credit and Intense Fare Competition.


Bali News: Garuda Grows Increasingly Strapped for Cash
Click Image to Enlarge

(12/18/2004)

The authoratative Indonesia Digest - an Internet newsletter published by Jakarta-based Ibu Wuryastuti Sunaryo, reports that "Deputy Minister for Logistics and Tourism of the Ministry for State-owned enterprises, Ferdinand Nainggolan, recently confirmed that Garuda Indonesia is in financial straits."

According to Ms. Sunaryo, the Airline has requested government refinancing in order to stave off a portfolio of debt totaling US$ 850 million, - significantly reduced from the US$ 1.1.billion owed in 1997. Of that total, US$ 650 million is owed to foreign creditors and falls due in 2010. The remaining US$200 million is in promissory notes that are due in 2007.

Garuda must find US$ 115 million in principal and interest that must be paid in the current year.

Pleas to the Government for assistance to be extended to Garuda are extremely problematic. With the majority of loans held by foreign creditors and Garuda's ability to borrow additional funds restricted under the terms of existing loan agreements, it's difficult to see where the airline will find the cash injection that it need. Legislators, meanwhile, will find it hard to come to Garuda's rescue given the similar financial circumstances of a number of other state-owned enterprises, including Merpati Nusantara Airlines.

And, as if all this were not enough, Ms. Sunaryo correctly underlines that Garuda now faces tough competition with other domestic, low-cost airlines, who have created a price war. Internationally the picture is equally grim with regional budget carriers also giving the National Carrier a run for its money.


© Bali Discovery Tours. Articles may be quoted and reproduced if attributed to http://www.balidiscovery.com.


 
Bali News by Bali Update
Subscribe to the Bali Update
Receive the latest news from Bali by email!



Our [Privacy Statement] explains how we handle the data you are providing.

 
Bali News by Bali Update
Explore the Archive of the Bali Update
Find related articles in our news archive!




or try to use Google Search :

Home · Bali Hotels · Bali Villas · Bali Excursions · Bali Sports · Bali News · Site Map · RSS

Bali News: More News
Local Teens Drown in Northeast Bali
3 Balinese Boys at Tulamben Die During Jukung Outing
(7/24/2014)
Stop the Press
Dug Smuggler Posing as a Reporter Arrested at Baliís Ngurah Rai Airport
(7/24/2014)
Loose Connections
Java-Bali High Voltage Submarine Cable Threatened by Shore Side Erosion
(7/24/2014)
Things That Go Bump in the Night
Mild Earthquake Off Southeast Coast of Bali on Thursday, July 24, 2014
(7/24/2014)
A Shocking Tragedy
Four Hospitalized with electrical Burns after Accident at Mantra Restaurant in Kerobokan, North Kuta
(7/24/2014)
A Voice from Ukraine. A Voice from Beyond
I Wayan Sujana: Born Bali - 1989 Died Ukraine -2014
(7/21/2014)
Calling all F&B Professionals
Join a Feast Breaking Gathering of Bali Culinary Professionals on Saturday, July 26, 2014 at Pica Tapas Bar
(7/21/2014)
Bali, Mystical and Darkly Magic
Sťance Held to Communicate with one of the Balinese Victims of the Shoot Down of MH17
(7/21/2014)
The Hills are Alive with the Sound of Jazz
Ubud Jazz Festival August 8-9, 2014
(7/20/2014)
Tree of Death
Young Australian Designer Commits Suicide in Dalung, Bali
(7/20/2014)
Interrupted Journey to Paradise
Six Bali Residents Die in Crash of MH 17 Shot Down Over Ukraine
(7/20/2014)
Colorfast Rainbow
Sanur Beach Now Home to Rainbow Coin Laundry - Our Favorite Laundromat.
(7/20/2014)
All [News]!
 
Tourism and Transport Tourism Agents