Garuda: Selling Off its Bits and Pieces
Subsidiaries, Office Buildings, Lots of Land and Old Airplanes for Sale to Help Address Garuda's Growing Cash Crisis.
While plans to secure a strategic partner for Indonesia's financially troubled Garuda Indonesia have inexplicably been placed on back burners, it now appears that the cash-starved national air carrier will soon put "non-productive" assets on the sales block in order to raise US$75 million in cash.
Part of an ongoing economic restructuring, the planned sale of assets is targeted to take place in 2007-2008.
The financial director of Garuda, Alex MT Maneklaran, told the Indonesian-language Bisnis Indonesia that he hope the Company's shareholders would issue the necessary approvals to permit the sale of "non-productive" assets and subsidiary companies.
Among the Airline's assets expected to be put up for sale, include:
• The Company's headquarters on Jalan Medan Merdeka Selatan in Jakarta which will precipitate a planned move to Bali's Soekarno-Hatta International Airport scheduled for completion by November 2007.
• Five DC-10 aircraft.
• PT Garuda Maintenance Facility – Aero Asia(GMF)
• PT Aerowisata Catering Services
• PT Gapura Angkasa - a warehousing concern.
• A number of land parcels owned by the Airline.
Plans are also afoot that will see the management of Garuda's low cost carrier Citilink split off from the national carrier, expected to be completed by January 1, 2008.
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