Indonesia’s Garuda names new CEO as its national carrier looks to fix finances, grow

JAKARTA (Bloomberg): Garuda Indonesia appointed Wamildan Tsani Panjaitan, a top manager at PT Lion Mentari Airlines, as its next chief executive officer as the Southeast Asian nation’s flagship carrier looks to turn a profit and expand its international network.

Panjaitan was appointed to the post following Garuda’s extraordinary general meeting on Friday afternoon, according to a company statement.

It’s the second time in four years that Garuda has switched its CEO. Panjaitan takes over from Irfan Setiaputra, a former telecoms executive who was appointed to the post in 2020 after his predecessor was fired for allegedly smuggling a classic Harley-Davidson motorcycle on a flight to Jakarta.

Bloomberg News previously reported that Panjaitan, a former air force pilot who joined Lion Air in 2023, was a leading candidate for the role.

The changes at the top come as people familiar with the matter say new Indonesian President Prabowo Subianto wants to make Garuda, which has long struggled financially and had a chequered safety record, more profitable and deepen its international presence.

Panjaitan also conveyed the mandate from the president. “He gave directions so that we can continue the process to bring this national airline back to being the pride of all of us,” the new CEO said.

That would involve adding more overseas routes and expanding Garuda’s fleet to some 150 aircraft. Garuda currently has about 100 jets, including its low cost unit Citilink.

Despite an almost $10 billion debt restructuring in 2022 that saw its fleet shrink from about 210 aircraft, the 74-year-old airline is still repairing its balance sheet and facing increased competition from privately held Lion Air.

Garuda reported a net loss of $29.6 million for the three month ended September, its third quarterly deficit.

— ©2024 Bloomberg L.P.