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Garuda posts reduced losses for first quarter as industrial disruption threatens operations
May 11th 2018
State-controlled Garuda Indonesia has continued bleeding money in the first three months of its fiscal year. Read More » Pahala Mansury-led Garuda posted a quarterly net loss of US$64.3 million, compared with a US$101.2 million net loss over the same months a year ago.
“We are on track to post a profit in 2018, but it will depend on the fuel price,” Mansury told Indonesian media.
Garuda could be facing an uphill battle in returning to profit as 1,350 of its pilots will refuse to fly each month from June. The pilots’ union is demanding management changes, including reducing the airline’s board from eight to six members and the dismissal of the airline’s human resources director, Linggarsari Suharso.
“For reasons that we can't understand, the management changed the scheduling system for the crew, which has resulted in crazy delays every long weekend and major flight cancellations,” the union's chairman, Ahmad Irfan Nasution, said in a news conference. The pilots also object to the removal of certain allowances for cockpit crew, including chauffeured rides to the airport that Suharso has curtailed.
