JAKARTA (Bloomberg): Indonesia is seeking Middle Eastern investors for its flag carrier Garuda Indonesia’s rights offer, part of the South-east Asian airline’s US$9.3 billion debt revamp.
The government wants carriers from the United Arab Emirates, Turkey and Saudi Arabia, particularly those with code-sharing arrangements, to subscribe to Garuda’s share sale, Transport Minister Budi Karya Sumadi said in an interview in Jakarta last Thursday (Oct 6).
"They need us for the haj traffic and we need them to connect to European markets,” he said.
Garuda’s pilgrimage flights to the Middle East are among its more profitable routes with over 200,000 Indonesians flying to Saudi Arabia for the trip every year, according to Religious Affairs Ministry data.
The airline’s code-sharing partners include Emirates, Etihad Airways PJSC, Turkish Airlines and Saudia Airlines, according to its website.
The government wants Garuda to have a foreign partner to help it boost international flights as the airline focuses on domestic routes.
On Oct. 14, the carrier will seek approval for the rights issue plan that will also see the government inject 7.5 trillion rupiah ($490 million) in additional capital.
