Jakarta. Garuda Indonesia will proceed with only one aircraft addition instead of the four initially planned, as the airline shifts focus to repairing its existing fleet following a major capital injection from sovereign wealth fund Danantara.

Garuda Indonesia CEO Glenny H Kairupan said the carrier will review next year’s fleet expansion plan, even though four aircraft had already reached the letter of intent stage. Only one will move forward because the down payment has been made.

“Of the four aircraft, we’re putting the other three on hold. One already has a down payment. The priority now is fixing the existing fleet. If we don’t, we’ll keep paying the lessor,” Glenny said on Thursday at Garuda’s Central Operations facility.

Glenny added that the decision aims to strengthen Garuda’s financial and operational posture before committing to new capacity. “At least in the next two years, we aim to return to health and fulfill the aspirations of our nation’s founders,” he said.

On Wednesday, shareholders approved a Rp 23.67 trillion ($1.42 billion) private placement to support Garuda’s turnaround. Danantara will inject the funds through Rp 17.02 trillion in cash and Rp 6.65 trillion in shareholder debt conversion.

About Rp 8.7 trillion, or 37 percent, will go toward Garuda’s working capital needs, including maintenance and fleet upkeep. The remaining Rp 14.9 trillion, or 63 percent, will support it's budget carrier, Citilink Indonesia, with Rp 11.2 trillion for working capital and Rp 3.7 trillion allocated to settle jet fuel purchase obligations owed to Pertamina for 2019–2021.

The capital increase involves issuing 315.6 billion Series D shares at Rp 75 per share, as approved during the extraordinary shareholders’ meeting.

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