Garuda Indonesia, the country’s flagship airline, has appointed Wamildan Tsani Panjaitan as its new CEO. The decision was finalized during a special shareholders meeting, with hopes that his leadership will steer the financially troubled airline towards stability. Panjaitan, who previously held a senior position at Lion Air, officially took on the role last Friday.
Panjaitan steps in to replace Irfan Setiaputra, who had been at the helm since 2020. Setiaputra took over after his predecessor faced allegations involving the illegal transport of a classic Harley-Davidson motorcycle on a Garuda aircraft. Before joining Garuda, Panjaitan had a long tenure at Lion Air, where he started in 2013 after a career in the Air Force. He rose through the ranks to become the airline’s director of safety, security, and quality and served as acting CEO in 2023. Lion Air, a major player in Indonesia’s aviation industry, operates over 100 aircraft.
For years, Garuda has struggled under a heavy debt load, fighting to stay afloat. Despite restructuring $10 billion in debt last year, the airline remains in the red. In the first nine months of this year, Garuda’s net losses jumped by 69%, reaching $127.7 million, even though revenue saw a 14% increase, totaling $2.5 billion. A report released in October by credit rating agency Pefindo emphasized the need for the airline to not only reduce its debt but also to strengthen its profit margins.
The airline’s latest leadership change has the backing of billionaire Chairul Tanjung, whose net worth is estimated at $5.1 billion. Tanjung’s business empire, CT Corp., controls an 8% stake in Garuda through Trans Airways and a personal shareholding. CT Corp. is a significant force in Indonesia’s business landscape, with ventures spanning from credit cards and hypermarkets to television networks and digital banking, including its ownership of Allo Bank Indonesia, a leading player in the country’s online banking sector.
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