Thread by @johanstravel

#GarudaIndonesia posts record loss of 2.4 billion USD over FY 2020. It took quite some time, it's over half way down 2021 already, but Indonesia's state-owned airline has finally published their numbers. Highlights? Here we go. (1/9)

#recordloss

asia.nikkei.com/Business/Trans…

Main points:
1. Sales down 68% YoY compared to the last non-corona year of 2019.
2. Liabilities exceed assets by a whopping 3.8 billion USD.
3. Negative cash-flow of 96.5 mil USD in 2020. (2/9)

What else, well.. this: "[...] Garuda's auditor PwC assigned a "no opinion" on the financial results - given when an auditor cannot judge whether a company's accounts have been properly created - which would further undermine investor confidence in the carrier." (3/9)

And this: "Garuda had agreed to a rescue package of 8.5 trillion rupiah ($586 million) with the government last year, but failures to meet certain performance requirements has meant that the carrier has only received 1 trillion rupiah." (4/9)

Of the 585 mil USD rescue package agreed with the government late last year, only some 65 million is paid out because the airline did not reach set thresholds for full payout of the package. This is to be expected as they can't really fly passengers anywhere, (5/9)

domestic market is also really bad, especially now with a de-facto lock-down making if virtually impossible to fly for fun; vaccination, PCR test AND valid reason to fly, and no, holiday isn't one of them. (6/9)

PwC also stated that it did not receive enough information for a proper audit in the future of the airline. (7/9)

It's clear that billions of dollars are needed to rescue the airline. Letting it go bust and start all over is something that is possible now, not just a thing to reject outright. (8/9)

As Garuda Indonesia has been issuing travel vouchers domestically ever since the pandemic travel limitations came into place over a year ago, if they let Garuda go bust, that would severely impact their name for sure. (9/9)

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