Jakarta. National flag carrier Garuda Indonesia announced that the Paris Court of Appeals has issued a judicial release decision in favor of its subsidiary, Garuda Indonesia Holiday France SAS (GIHF), regarding a lawsuit filed by Garuda's lessors on Feb. 22.

In June 2022, Garuda Indonesia successfully obtained approval for a debt restructuring process at the Commercial Court in the Central Jakarta District Court, garnering support from the majority of creditors, excluding the Greylag entities.

The entities, consisting of Greylag Goose Leasing 1410 Designated Activity Company and Greylag Goose Leasing 1446, filed a provisional attachment (temporary confiscation) against GIHF's bank account, Garuda's subsidiary in the travel agent sector.

In February 2023, the Paris Commercial Court granted full acquittal to the temporary confiscation of GIHF's account and ordered the two lessors to pay GIHF 230,000 euros (Rp 3.9 billion), in connection with damages and costs incurred related to legal action. Tumpal explained that on April 19, 2023, Greylag Entities filed an appeal against the court's decision, which favored GIHF.

On Feb. 22, the Paris Court of Appeals issued a judicial release decision that favored GIHF and instructed the Greylag entities to pay a certain amount of fees to GIHF. 

"Based on the decisions at the commercial and appeal courts, Greylag Entities also have an obligation to pay 80,000 euros to GIHF," said Garuda Indonesia's Director of Operations, Tumpal M Hutapea, in his statement on Tuesday.

Tumpal emphasized that there is no direct impact on the company's operational activities. "The company ensures that all operational activities are running normally," he concluded.

Shares of Garuda Indonesia soared 5.88 percent to Rp 72 in the early trading session on Feb. 27.

Garuda-InJourney Merger
On Friday, Garuda addressed recent speculations surrounding its potential merger with Aviasi Pariwisata Indonesia (InJourney), a state-owned enterprise holding company in the tourism and aviation sector.

Tumpal said discussions regarding the merger are still underway, and the company commits to providing updates on the progress when significant developments arise.

"We will keep stakeholders informed about the advancements in the process or realization of these strategic plans," Tumpal said in a released statement on Friday.

InJourney's subsidiaries include airport operators Angkasa Pura I and PT Angkasa Pura II, tourism company Taman Wisata Candi overseeing the Borobudur, Prambanan, and Ratu Boko Temples, Hotel Indonesia Natour, Indonesia Tourism Development Corporation, and state-owned mall Sarinah.

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