Air Transport World

Garuda Indonesia: article)

Garuda had a difficult year as both the airline and the government actively sought a white knight. Lufthansa and Qantas have been linked to the effort although nothing concrete has materialized. According to Indonesian media, Garuda advised that it lost IDR672 billion ($70.7 million) in 2005 and still owes $1.2 billion, a legacy of the Asian currency crisis. Any foreign assistance will certainly stumble over the government's insistence on retaining a 51% stake.

The carrier's problems were highlighted when it was forced to ask Malaysia Airlines to reduce its thrice-daily 777 service between Kuala Lumpur and Jakarta to boost yields. …

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