Garuda president Abdul Gani resigns<\/p>\n
Debbie A. Lubis, The Jakarta Post, Jakarta<\/p>\n
President of flag-carrier Garuda Indonesia Abdul Gani has
\ntendered his resignation amid reports that the government is
\nplanning to reshuffle the management of the ailing airline.<\/p>\n
Speaking during a hearing with House of Representatives
\nCommission IV for transportation and infrastructure on Monday,
\nGani said he had submitted his resignation to the Office of the
\nState Minister of State Enterprises last Wednesday.<\/p>\n
But he dismissed suggestions that his resignation was due to
\npressure from the top.<\/p>\n
Gani, a former banker, said that he promised three years ago
\nwhen appointed Garuda president that he would step down once the
\nrestructuring of the airline's US$1.4 billion overseas debt had
\nbeen completed.<\/p>\n
Gani's five-year term was due to expire next year.<\/p>\n
He expected his resignation would be approved during the
\nairline's extraordinary shareholders meeting at the end of
\nFebruary or early March.<\/p>\n
Gani's resignation came when the government was about to
\nreshuffle the top management of Garuda and Merpati Nusantara
\nAirlines, also a state-owned company, in a bid to help improve
\ntheir business performance.<\/p>\n
Meanwhile, House Commission IV member Enggartiasto Lukita said
\nthat Abdul Gani had done a great job.<\/p>\n
"It is difficult to convince foreign creditors in this
\nclimate. Gani is a professional and Garuda still needs a person
\nlike him," he said.<\/p>\n
He also lambasted the government for leaking news of the
\nreshuffle at Garuda and Merpati to the press, saying that the
\nnews had made officials at the two airlines nervous and unable to
\nconcentrate on their jobs.<\/p>\n
He expected such actions would not be repeated.<\/p>\n
An independent audit was conducted between 1995 and 1999 on
\nGaruda, which revealed efficiency losses amounting to US$1.62
\nbillion, $698 million in potential losses and $147 million in
\nlost opportunities for savings or gains.<\/p>\n
But Garuda management insisted that the company had taken
\nmeasures to improve efficiency and minimize losses with the
\nlaunching of its restructuring program in 1998.<\/p>\n
"Since then, we have made advances toward corrective
\nactions and our operations have now improved significantly," he
\nsaid.<\/p>\n
Garuda's corrective measures include the closure of 17
\nflight routes in 1998, staff cuts in 1998 and the return of
\nuneconomical leased planes in 1999.<\/p>",
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