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A Garuda Indonesia Boeing 777 in London. (Photo: AirlineGeeks | William Derrickson)

Government Prepares to Takeover Garuda Indonesia Routes if it Declares Bankruptcy

Indonesian national carrier Garuda Indonesia may be forced into bankruptcy as it faces growing debts after months of financial difficulties due to the impact of Covid-19. The Indonesian government in response has prepared Pelita Air Service, a subsidiary of Indonesia's Pertamina, a state-owned oil giant, to take over domestic flights within Indonesia if Garuda Indonesia files for bankruptcy. If Garuda Indonesia fails to renegotiate leases and restructure its nearly U.S. $5 billion debt, the government is prepared to turn Pelita…