Garuda 'may sell' headquarters building<\/p>\n
JAKARTA (JP): National flagship carrier Garuda may sell or
\nlease its headquarters building in Jakarta to help it weather the
\ngrim financial storm, news reports said on Thursday.<\/p>\n
Antara quoted its source as saying that the ailing airline
\nwould move out of its current office located in one of Jakarta's
\nmost strategic business districts to a more modest area at the
\nairport compound.<\/p>\n
\"Garuda will soon build an office facility at the Garuda
\nMaintenance Facility area in the Soekarno-Hatta airport,\" the
\nsource said.<\/p>\n
The source said the airline would proceed with the plan after
\nit began streamlining its workforce.<\/p>\n
Garuda's spokesman Pudjobroto declined to confirm the reports,
\nacknowledging only a plan to move the management close to the
\nairport maintenance facility to closely monitor daily operations.<\/p>\n
Garuda President Robby Djohan has announced that the airline
\nwill lay-off some 3,000 of its 12,732 employees as early as next
\nmonth to survive the deepening crisis.<\/p>\n
Some of the workers will be given golden handshakes while the
\nremainder will be moved to its subsidiaries, including PT Gapura,
\nPT Aerowisata and Mandira.<\/p>\n
The airline is also planning to sell a $300 million
\nmaintenance facility unit as a cost-saving measure, as well as
\nseveral aircraft including five DC-10s, and several Foker 28s.<\/p>\n
The European consortium Airbus Industrie has agreed to roll
\nover $750 million of debt owed by the troubled carrier for the
\nlease of six Airbus 330 aircraft.<\/p>\n
Garuda, like the remaining four operating scheduled domestic
\ncarriers, is enduring the country's worst economic turmoil in
\ndecades with soaring operational costs and sinking income. (das)<\/p>",
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