Garuda Indonesia trapped in a relentless financial tailspin

[Bob]

If I am paying from my own pocket, I will typically go for the least expensive option.

You know what they say, sometimes you get what you pay for. I haven't flown AA for several years and I don't intend to ever do it voluntarily.

 

[Balifrog]

That video seems a little sensationalistic. The claim that GA had half their fleet in heavy maintenance at one time is difficult to take at face value. It may be that half their fleet was in (not so heavy) maintenance or storage, which isn't the same. It would be very irregular to have more than a relatively few aircraft in calendar check at the same time. That's not to say that they're not in a bind; they certainly are.

Danantara aims to return all grounded Garuda jets by 2026

Indonesia’s sovereign investment body Danantara said Friday that restoring Garuda Indonesia’s grounded aircraft to full operation by 2026 is its ...

en.antaranews.com

As of late November 2025, approximately 34 aircraft from the Garuda Indonesia Group (including Citilink) remain grounded due to technical maintenance delays and spare parts shortages, with plans for a full return to operation by 2026. The issue stems from financial constraints affecting maintenance, rather than structural safety defects.

Many Grounded Aircraft Become Garuda Indonesia's Financial Burden

The Danantara Investment Management Agency (BPI) revealed that many aircraft that were grounded or unemployed were one of the main causes of the financial pressure of PT Garuda Indonesia (Persero) Tbk.

voi.id

They have a huge maintenance backlog, because no money to buy the parts, pay subcons for fhe maintenances, pay outstanding bills with suppliers.

Makes one worry about the maintenance of the planes that continue to fly.....

 

[harryopal1]

Ohh all this petty fuss about maintenance and air worthiness. In the 1980s the chief pilot of Air India said that a locally produced version of one of the main jet aircraft at the time would not have sufficient thrust to stay in the air if one engine failed. The problem was quickly resolved by putting the chief pilot in gaol. All tht Garuda requires is a bit of executive imaginative management and these maintenance issues can be disappeared.

 

[snpark]

Ohh all this petty fuss about maintenance and air worthiness. In the 1980s the chief pilot of Air India said that a locally produced version of one of the main jet aircraft at the time would not have sufficient thrust to stay in the air if one engine failed. The problem was quickly resolved by putting the chief pilot in gaol. All tht Garuda requires is a bit of executive imaginative management and these maintenance issues can be disappeared.

Almost like this

Tom Cruise's Safety Guy 😂🤣 #shorts

Enjoy the videos and music that you love, upload original content and share it all with friends, family and the world on YouTube.

youtube.com

 

[Bob]

Danantara aims to return all grounded Garuda jets by 2026

Indonesia’s sovereign investment body Danantara said Friday that restoring Garuda Indonesia’s grounded aircraft to full operation by 2026 is its ...

en.antaranews.com

As of late November 2025, approximately 34 aircraft from the Garuda Indonesia Group (including Citilink) remain grounded due to technical maintenance delays and spare parts shortages, with plans for a full return to operation by 2026. The issue stems from financial constraints affecting maintenance, rather than structural safety defects.

Many Grounded Aircraft Become Garuda Indonesia's Financial Burden

The Danantara Investment Management Agency (BPI) revealed that many aircraft that were grounded or unemployed were one of the main causes of the financial pressure of PT Garuda Indonesia (Persero) Tbk.

voi.id

They have a huge maintenance backlog, because no money to buy the parts, pay subcons for fhe maintenances, pay outstanding bills with suppliers.

Makes one worry about the maintenance of the planes that continue to fly.....

Ok so grounded for spares and not for heavy checks then. There must be a serious backlog of spares since most all can be swapped between the same type of aircraft. They've got their own maintenance facility too. Let's hope they get things in order soon for the flying public's benefit.

 

[snpark]

But the whole thing with planes and airlines is you have to keep them running. Parking a 380 up for 6 months is suicidal excuse the word.

Ignoring the financial part

But for the maintenance the longer a plane sits there the more and more expensive and troublesome the maintenance is going to be when finally you want it flying again. Not just an oil change and wash the windows down.

Gonna have to break down the engines. Check gaskets. Drain and clean oil lines and tanks etc etc.

C or D. HMV. Not an easy thing. Or quick.

 

[pantaiema]

Danantara aims to return all grounded Garuda jets by 2026

Indonesia’s sovereign investment body Danantara said Friday that restoring Garuda Indonesia’s grounded aircraft to full operation by 2026 is its ...

en.antaranews.com

As of late November 2025, approximately 34 aircraft from the Garuda Indonesia Group (including Citilink) remain grounded due to technical maintenance delays and spare parts shortages, with plans for a full return to operation by 2026. The issue stems from financial constraints affecting maintenance, rather than structural safety defects.

Many Grounded Aircraft Become Garuda Indonesia's Financial Burden

The Danantara Investment Management Agency (BPI) revealed that many aircraft that were grounded or unemployed were one of the main causes of the financial pressure of PT Garuda Indonesia (Persero) Tbk.

voi.id

They have a huge maintenance backlog, because no money to buy the parts, pay subcons for fhe maintenances, pay outstanding bills with suppliers.

Makes one worry about the maintenance of the planes that continue to fly.....

In capital-intensive sectors such as airlines, depreciation, maintenance, and fleet renewal rank among the most significant and essential expenses. Aircraft don’t simply wear out over time; they require routine inspections, major maintenance checks, engine overhauls, and ultimately replacement at the end of their service life. When these costs are properly accounted for in both the profit and loss statement and the balance sheet, sufficient funds should be available to cover repairs, component replacements, and eventual fleet renewal.

In Garuda case, marked up in procurement have already been established in court, with those found guilty receiving sentences. In addition, it’s possible that depreciation, part replacement costs were understated on the book. Not to mention additional cost if the aircraft are grounded, not immediately repaired when needed.

If depreciation, parts replacement costs were understated, In the early years following injections of state or taxpayer funding, a project may appear highly profitable on paper. However, a few years later when significant maintenance or aircraft replacement is required, the necessary funds may no longer be available.

Although Garuda Indonesia is a state-owned enterprise, it is listed on the Indonesia Stock Exchange(IDX) under the ticker symbol GIAA where the Indonesian government remains the majority shareholder.. In principle, anyone with access to that stock market, including individuals in this forum could purchase shares and become partial owners of the airline. if he wants.

 

[Balifrog]

Keep in mind that most of Garuda's fleet is leased, and that even grounded the monthly lease still need to be paid. And that is a cash outflow.
Contrary to a paid and owned aircraft where yearly depreciation is just a movement on the balance sheet. Except if there is a loan behind.....

"As of late 2024/early 2025, Garuda Indonesia operates with a significantly restructured, smaller fleet to manage financial pressure, with roughly 69–75 total aircraft. While a specific, up-to-the-minute number of leased versus owned aircraft is not explicitly stated in recent fleet updates, the vast majority of their fleet has historically been leased, with ongoing restructuring to renegotiate these lease terms"

• Leasing Structure: Garuda has been engaged in long-term efforts to renegotiate high leasing costs and return aircraft, having previously reported leasing from dozens of different lessors.

 

[Bob]

But the whole thing with planes and airlines is you have to keep them running. Parking a 380 up for 6 months is suicidal excuse the word.

Ignoring the financial part

But for the maintenance the longer a plane sits there the more and more expensive and troublesome the maintenance is going to be when finally you want it flying again. Not just an oil change and wash the windows down.

Gonna have to break down the engines. Check gaskets. Drain and clean oil lines and tanks etc etc.

C or D. HMV. Not an easy thing. Or quick.

If they did the preservation tasks correctly before and during storage then it shouldn't take so much to get them airworthy, not to the level of C or D check unless a check is due. But it is some extra work.

 

[snpark]

Aerial view over the LARGEST aircraft boneyard in the world!

Helicopter flight over the 309th Aerospace Maintenance & Regeneration Group (AMARG) at Davis-Monthan Air Force Base in Tucson, Arizona. This boneyard is home...

youtube.com

 

[pantaiema]

I have been saying this for ages have not I ???



IMO, it does not need an acute forensic accountant to find out what is going on. The logic is simple other privately owned domestic airlines operating routes within Indonesia and to neighbouring countries do not receive state funding injection, yet they are still able to compete effectively with Garuda Indonesia and Citilink and profitable. Examples include Lion Air, Batik Air, Wings Air, and Super Air Jet. In addition, low-cost carriers, National flaged Airlines, from neighbouring countries, such as AirAsia, Cathay Pacific, Singapore Airlines operate under similar conditions with Garuda, City Link.

Like other national flag carriers flying internationally to regions such as the Middle East, Europe, the United States, and Australia, they are exposed to the same market environment, yet many of them remain profitable.

Garuda Indonesia is a state-owned enterprise, but it is listed on the Indonesia Stock Exchange (IDX) under the ticker symbol GIAA where the Indonesian government remains the majority shareholder. This is the type of company you could also partially own if you are interested.

 

[Bob]

I have been saying this for ages have not I ???



IMO, it does not need an acute forensic accountant to find out what is going on. The logic is simple other privately owned domestic airlines operating routes within Indonesia and to neighbouring countries do not receive state funding injection, yet they are still able to compete effectively with Garuda Indonesia and Citilink and profitable. Examples include Lion Air, Batik Air, Wings Air, and Super Air Jet. In addition, low-cost carriers, National flaged Airlines, from neighbouring countries, such as AirAsia, Cathay Pacific, Singapore Airlines operate under similar conditions with Garuda, City Link.

Like other national flag carriers flying internationally to regions such as the Middle East, Europe, the United States, and Australia, they are exposed to the same market environment, yet many of them remain profitable.

Garuda Indonesia is a state-owned enterprise, but it is listed on the Indonesia Stock Exchange (IDX) under the ticker symbol GIAA where the Indonesian government remains the majority shareholder. This is the type of company you could also partially own if you are interested.

Wasn’t that video posted here earlier?
Garuda and Citilink still don’t operate in the same environment as SQ, EK, CX, etc., and none of us can say whether the Lion group turns a profit or not. Repeating a fallacy ad nauseam doesn’t make it true.

 

[pantaiema]

Wasn’t that video posted here earlier?
Garuda and Citilink still don’t operate in the same environment as SQ, EK, CX, etc., and none of us can say whether the Lion group turns a profit or not. Repeating a fallacy ad nauseam doesn’t make it true.

is it in this thread ?? I couldn't find it.

 

[snpark]

TBH so many posts and threads and videos about GA and Citi even going back a decade. Pre COVID when the top man was smuggling in Brompton folding bikes and Harley's and had his mistress reallocated to the flights he was taking. He was married but had a cabin crew as a spare. The story never changes really. Lots of corruption just a different item. If you gonna skim millions off free school lunches at least feed the damn kids healthy. Not only they starved but half of them dying in RS.

And why the politicians so greedy. Stealing tens and hundreds of millions allegedly then keep it literally in notes under their bed. Don't even attempt to put it somewhere safe. The police raids and the guys are pulling out duffle bags with HK$ and SG$ and gold bars

Just nick $10m and buy a couple of apartments and some land, build a reasonable size house and buy a range rover and be happy.

Btw i see white rabbit club in PIK got raided and closed down. Isn't one of the owners the Indonesian Thanos? Rings and Liberace suits lol.

 

[pantaiema]

TBH so many posts and threads and videos about GA and Citi even going back a decade. Pre COVID when the top man was smuggling in Brompton folding bikes and Harley's and had his mistress reallocated to the flights he was taking. He was married but had a cabin crew as a spare. The story never changes really. Lots of corruption just a different item. If you gonna skim millions off free school lunches at least feed the damn kids healthy. Not only they starved but half of them dying in RS.

And why the politicians so greedy. Stealing tens and hundreds of millions allegedly then keep it literally in notes under their bed. Don't even attempt to put it somewhere safe. The police raids and the guys are pulling out duffle bags with HK$ and SG$ and gold bars

Just nick $10m and buy a couple of apartments and some land, build a reasonable size house and buy a range rover and be happy.

Btw i see white rabbit club in PIK got raided and closed down. Isn't one of the owners the Indonesian Thanos? Rings and Liberace suits lol.

If it were that easy, criminals and tax evaders wouldn’t need to stash large amounts of cash at home, they could simply launder it using relatives, closed friend acting as money mules.

In many countries, buying a $10 million property outright in cash requires you to clearly explain the source of those funds.

 

[snpark]

But this is Indonesia remember

 

[snpark]

Bu99er just wrote a long reply and added a video but it won't let me and also I lost my text. Karma.

Ok anyway $1m is a Samsonite suitcase weighs 20kg

In good old €500 notes it's 20 stacks that's nicely in a Hermes bag. Even €50,000 is less than an iPhone in your pocket.

But $1m in rupiah damn you almost need a box van lol. Even in 100's

Love the videos from the police raids where they are in an aircraft hangar half full of rupiah notes and say this is example $25m seized in rupiah and it's like a container of red notes. Almost impossible to move it or transport it without making a scene.

Can't do video so here's a still of a camera scanning one raid press conference

 

[Banana72]

Bu99er just wrote a long reply and added a video but it won't let me and also I lost my text. Karma.

Ok anyway $1m is a Samsonite suitcase weighs 20kg

In good old €500 notes it's 20 stacks that's nicely in a Hermes bag. Even €50,000 is less than an iPhone in your pocket.

But $1m in rupiah damn you almost need a box van lol. Even in 100's

Love the videos from the police raids where they are in an aircraft hangar half full of rupiah notes and say this is example $25m seized in rupiah and it's like a container of red notes. Almost impossible to move it or transport it without making a scene.

Can't do video so here's a still of a camera scanning one raid press conference

View attachment 5517

I am sure many of those red papers will be 'diamankan'...'stowed away properly'....I mean who's gonna exactly count them? They probably do it the way George Jung managed his cash back in the 70s...just weigh 'em...losing a couple bills here and there won't matter.

 

[snpark]

Did you watch the Tailor of Panama movie, he asks for $10m, the embassy requests $15m and the Treasure guy asks the CIA for $20m lol just a pittance to secure the old faithful revolution. Well played Andy.

 

[pantaiema]

I am sure many of those red papers will be 'diamankan'...'stowed away properly'....I mean who's gonna exactly count them? They probably do it the way George Jung managed his cash back in the 70s...just weigh 'em...losing a couple bills here and there won't matter.

If you’ve been following the many recent cases of large-scale corruption in Indonesia, you’ll notice that in some instances, those involved were caught storing piles of cash in their own homes or in the homes of relatives or friends, for obvious reasons. Keeping such money in a bank is risky, as it would require explaining its origin, and there’s also the possibility that the funds could be frozen beyond their control.

In situations like these, prosecutors do count the money as they will need to declare the total amount of seized cash to report it officially in the press conference. As shown in some documentaries, this is typically done by having several people count the banknotes. It is highly individuals counting the banknotes are professionals such as bank cashiers.