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Indonesia's Garuda to halve aircraft fleet in restructuring plan

Debt-ridden carrier offering early retirement as COVID empties seats

A vastly reduced passenger count means that Garuda cannot cover operating costs.   © Reuters

JAKARTA -- Garuda Indonesia will slash its fleet in half in an attempt to cut losses and spiraling debt, Nikkei Asia has learned, as the carrier struggles to stay aloft amid the COVID-19 pandemic and its effect on the global airline industry.

Indonesia's biggest airline said in a filing to the country's stock exchange on Monday that it was offering an early retirement program as part of an effort to "make Garuda Indonesia a healthier and more adaptive company in responding to business performance challenges in a new era of normality."

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