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Garuda Indonesia sacks CEO after cost cuts angered union

Minister picks another SOE executive to lead struggling national carrier

Garuda Indonesia's ousted CEO Pahala Mansury during a press conference on September 6. (Photo by Akira Kodaka)

JAKARTA/TOKYO -- National airline Garuda Indonesia on Sept. 12 sacked its chief executive whose cost-cutting measures drew strong resistance from the labor union and replaced him with an executive from another state-owned company.

Garuda, which is controlled by Indonesia's Ministry of State-Owned Enterprises, replaced Pahala Mansury with Askara Danadiputra, president of port operator Pelindo III, at a shareholders' meeting. Other executives were reshuffled, leaving just two of Garuda's eight board seats unchanged.

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