Garuda Indonesia, the national airline of Indonesia, announced plans to raise up to 124.4 billion new Series E shares through a rights issue, as part of its 2025-2029 restructuring plan. Shareholders are set to vote on the proposal on November 6, 2026, with the exercise price yet to be announced. This move aims to bolster the airline's financial position and support its long-term growth strategies.
The airline operates a fleet of 114 aircraft, serving 51 destinations across 74 routes, with an average of 236 flights daily departing from Jakarta Soekarno-Hatta Airport. These operational figures reflect Garuda Indonesia’s significant position within the regional aviation industry.
Strategic Developments and Fleet Plans
The restructuring involves not only capital increases but also strategic partnerships, notably with GMF AeroAsia, a maintenance, repair, and overhaul (MRO) subsidiary. Danantara Asset Management, linked to the sovereign wealth fund Danantara Indonesia, intends to subscribe to the new shares, contributing a stake in GMF AeroAsia without cash, signifying a focus on operational assets as well as financial resources.
“The company aims to strengthen its restructuring process and improve operational efficiency through these strategic shareholding adjustments,” said a spokesperon familiar with the plans.
These efforts follow earlier land contributions to GMF AeroAsia, indicating a comprehensive approach towards financial sustainability and fleet modernization. The airline continues to evaluate future expansion opportunities, aiming to meet increasing passenger demand in the region and maintain competitive advantage.
