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Garuda Indonesia faces major headwinds after restructuring

Airline's descent from 'big elephant' status comes as industry still struggles

Garuda Indonesia and its CEO Irfan Setiaputra have their work cut out for them after creditors approved the airline's restructuring plan. (Nikkei montage/Reuters)

JAKARTA -- Garuda Indonesia CEO Irfan Setiaputra was optimistic after winning overwhelming approval from creditors for a plan to restructure billions of dollars in debt. And while the state-owned airline may have averted bankruptcy, it still faces huge challenges.

Setiaputra set the bar high after Garuda got far more than the two-thirds support it needed, saying the result shows the "high trust" investors have in the company and vowing a fast return to profitability.

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