SQ, LH, TG, KLM are mentioned to be interested in acquiring 49% of GARUDA. Which airline do you think is the best suited for GARUDA and why? I personally hope SQ is a serious candidate. GARUDA can certainly learn from the strong SQ marketing and its product portfolio. Most importantly GARUDA can learn to become a profitable run airlines again.

http://www.forbes.com/markets/feeds/afx/2006/01/06/afx2431874.html

This article suggests the contrary...

http://today.reuters.com/news/newsArticleSearch.aspx?storyID=183196+06-Jan-2006+RTRS&srch=Garuda
So who knows what will happen?

well,Lufthansa is the biggest of them,but i think that SQ should be the partner of Garuda cuz i think that Lufthansa shouldn't concentrate on this region!

Air France-KLM is bigger than Lufthansa now, but I don't know that they'd want to own them necessarily... Don't they have older planes, and financial troubles? However, I guess it would fill in the SE Asian gap in Skyteam that Air France allegedly doesn't want Malaysian Airlines to fill... Lufthansa and Star Alliance is already crowded in the region, with Singapore and Thai. Maybe a oneworld airline would make better use of Garuda, or MH.
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Lufthansa, KLM file interest in Garuda
Rendi Akhmad Witular, The Jakarta Post/Jakarta

Three giant airlines have expressed interest in purchasing shares in national flag carrier Garuda Indonesia after the government announced plans to sell its 49 percent stake in the airline, a top official says.

The secretary to the State Minister of State Enterprises, Muhammad Said Didu, said the airlines included those with huge financial resources and a wide global network, such as Lufthansa, KLM Royal Dutch Airlines and Thai Airways.

"There have been no official requests yet from the airline giants. However, several of them have called us to express an interest in forming a strategic alliance with Garuda," he said on Friday.

"Ideally, we are looking at huge airlines, which could not only help settle Garuda's debts but also expand its fleet to compete with other players. Financial institutions are welcome but they will not be prioritized," he added.

However, Said said the government was still studying the best options for resolving the financial problems in debt-ridden Garuda, which could include seeking strategic investors, injecting fresh funds and selling shares in the stock market.

Despite financial problems faced by the airline, investors are still interested in Garuda because of its 50 percent share of domestic airline market and the country's huge captive market.

"Garuda's captive market is the largest in the region. Aside from carrying state officials, it is the only domestic airline having the privilege to transport some 200,000 national haj pilgrims to Saudi Arabia annually," Said said.

Garuda recently announced its failure to pay US$50 million of its floating-rate bonds due in December following cash flow problems it blamed on the Oct. 1 bomb attacks on Bali last year, which badly affected its revenue.

Due to an accumulation of various external problems, the airline is likely to book a loss of more than $70 million last year -- higher than its initial estimation of around $50 million. In 2004, the company recorded a net loss of Rp 811 billion (US$84.75 million).

Said said the airline was seeking $105 million in bridging loans from the government to repay debt and to strengthen its working capital should there be no strategic partner interested in Garuda.

"Garuda has filed a proposal to the Office of Coordinating Minister for the Economy to request for the loans. The government should be ready with the funds if there are no investors willing to invest in the airline," he said.

Garuda commissioner and state enterprises ministry official Aries Mufti recently said the government and the management of the airline were studying the feasibility of selling a 49 percent stake in the airline to strategic investors.

As of March 2005, Garuda's debts amounted to US$826 million, with the largest owed to the European Export Credit Agency and the rest in the form of promissory notes and bank loans.

The debts are mostly as a result of corruption within the airline during past administrations, with many government officials and political parties stealing cash from the flag carrier.
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Saturday January 7, 12:57 AM
Air France denies interest in Indonesia's Garuda

PARIS, Jan 6 (Reuters) - Air France-KLM said on Friday it was not eyeing a stake in airline Garuda Indonesia, rejecting comments from a senior Jakarta official who said the French carrier and others had expressed interest.
"We are not interested and Garuda has not approached us, not for an investment nor for a possible membership in Sky Team," a spokesman for Air France said.

Said Didu, secretary to Indonesia's minister for state enterprises, earlier on Friday told reporters that airlines including Air France and Germany's Lufthansa had expressed interest in taking a stake in Garuda.

"We do not comment on such speculation," a spokeswoman for Lufthansa said.

Lufthansa Chief Executive Wolfgang Mayrhuber told Reuters recently that the airline was not in any concrete negotiations with other carriers about acquisitions.

Indonesian media quoted State Enterprises Minister Sugiharto as saying the government was considering selling up to 49 percent of Garuda to strategic investors.

The airline defaulted on a $55 million debt repayment at the end of 2005.

The government has vowed to help Garuda cope with its financial problems, which Garuda President Director Emirsyah Satar has blamed on a weakening rupiah, higher oil prices, competition in the industry and security issues, including bombings in Bali in October.

The company has said its total debt stands at $826.5 million, with more than 60 percent owed to the European Credit Agency (ECA). (Additional reporting by James Regan in Frankfurt and Adriana Nina Kusuma in Jakarta)

January 9, 2005
Lufthansa: Has No Plan To Buy Stake In Indonesia's Garuda

FRANKFURT (Dow Jones)--German airline Lufthansa AG (LHA.XE) doesn't plan to buy a stake in loss-making Indonesian airline Garuda Indonesia, a Lufthansa spokeswoman told Dow Jones Newswires on Monday.

The spokeswoman said that the company isn't interested and isn't in talks to buy a stake in Garuda.

The Jakarta Post reported Friday that the Indonesian government plans to sell a 49% stake in Garuda.

Two weeks ago, Garuda announced it couldn't pay the principal of $55 million in debt that falls due at the end of December due to cash flow problems.

My vote goes to KLM since Indonesia was a former Dutch colony, they have historical ties that goes way back.

^I agree, it makes sense, and it will plug a hole in Skyteam's SE Asian operations if they can make Garuda profitable.

Garuda was set up back in 1949 as commercial airline with the help of KLM. A lot of technical assistance was provided during early days of Garuda especially around the 60s where Garuda leased a lot of KLM planes. The service of Garuda for the past years especially since the late 90 until now have improved a lot. The problem with this airlines is the lack of money to run as a worldclass commercial airline due to past corruption and misuse of funds by the old government.

Somehow I learned, you dont know which you can or cannot trust.
The companies keep saying the same thing all the time, they deny, they dont deny, and what later comes out, doesnt have anything to do with their statement before (during the speculation time).

The best is probably just wait and see. :)


January 9, 2005
Lufthansa: Has No Plan To Buy Stake In Indonesia's Garuda

FRANKFURT (Dow Jones)--German airline Lufthansa AG (LHA.XE) doesn't plan to buy a stake in loss-making Indonesian airline Garuda Indonesia, a Lufthansa spokeswoman told Dow Jones Newswires on Monday.

The spokeswoman said that the company isn't interested and isn't in talks to buy a stake in Garuda.

The Jakarta Post reported Friday that the Indonesian government plans to sell a 49% stake in Garuda.

Two weeks ago, Garuda announced it couldn't pay the principal of $55 million in debt that falls due at the end of December due to cash flow problems.

http://img291.imageshack.us/img291/3016/garuda41ex.png (http://imageshack.us)

http://img386.imageshack.us/img386/4069/garuda15ic.jpg (http://imageshack.us)

http://img301.imageshack.us/img301/969/garuda22zo.jpg (http://imageshack.us)

How many passangers did Garuda carry last year???

In January to September 2005: 6,560,615 Passenger:)

History points to KLM, but KLM is not all Dutch now it's French

^^That is true.
And I think the traffic is not that high between Indonesia and Netherlands.
Germany -i think- has a higher traffic to/from Indonesia. At least in higher yielding segment.