Garuda paid off $66.9m debts in 2003

The Jakarta Post, Jakarta

National flag carrier Garuda Indonesia paid off US$66.9 million in debts, including interest, last year, cutting down its debt obligation to about $770 million.

The debts were paid off on Dec. 22 and Dec. 29 to, among others, JP Morgan, European Credit Agencies, state-owned banks BNI and Bank Mandiri, state-owned airport operators Angkasa Pura I and II, corporate spokesman Pudjobroto said in a statement on Friday.

The payment was made in both the US dollars and rupiah, totaling $51.9 million and Rp 126.6 billion respectively.

JP Morgan took the largest chunk of the payment with $44.2 million and Rp 60.7 million.

Following the 2003 debt payment, Garuda now has to spend about $110 million a year to service its debt obligation within seven years, according to Pujubroto.

Garuda paid taxes in 2003 amounting Rp 199.7 billion ($2.22 million), including Rp 92.6 billion worth of value-added tax (VAT) and Rp 106.8 billion worth of income tax.

Despite the Severe Acute Respiratory Syndrome (SARS) outbreak and the Iraq war, which has greatly impacted many airlines in the region, the company recorded a 4.9 percent increase in the number of passengers in 2003; 7.23 million people, from 6.89 million in 2002.

Those figures were made up of 5.5 million domestic travelers and 1.7 million international travelers.

Asian travelers made up the bulk of the international travelers with a total of 1.09 million passengers last year. Other international passengers came from Australia, New Zealand, the Middle East and Europe.

Last month Garuda reopened its Jakarta-Singapore-Ho Chi Minh City route, which was closed in October 1998. This month the airline plans to fly to Beijing.