Indonesia flag carrier Garuda is set for a $1.4 billion financial lifeline from Indonesia’s sovereign wealth fund.
In a filing with the Indonesia Stock Exchange, Garuda plans will get $1.44 billion through a new share issue to the fund, Danantara.
Danatara has a majority stake in the airline after an earlier government transfer aimed at stabilizing the struggling business.
The new funding will ultimately give Danantara 93.5% ownership, up from the current 63%.
The cash infusion will underpin its financial structure and fund daily operations.
About $300 million will initially go toward refreshing its fleet.
be allocated to expanding its fleet, including for its low-cost subsidiary, Citilink.
Garuda has struggled to stay solvent for years, relying on state financial support.
Two years ago, Garuda restructured $10 billion of its debt.
