Garuda Airlines: From Financial Crisis to Tragedy

The video discusses the impact of the 1997 economic crisis on Garuda Indonesia, highlighting its financial struggles and debt issues. It covers the airline's attempts at debt restructuring, cost-cutting measures, and the role of its strong brand in initial recovery. Despite these efforts, Garuda faced further challenges, including scandals and PR crises. New leadership implemented financial strategies to stabilize the airline, focusing on debt management and operational efficiency.

What was one of the major impacts of the 1997 Asian financial crisis on Garuda Indonesia?

• Expansion of international routes

• Negative net worth and bankruptcy

• Increased passenger numbers

• Strengthened financial position

What was a key strategy in Garuda's initial restructuring efforts?

• Expanding the fleet

• Increasing employee salaries

• Focusing on regional routes

• Opening new international routes

What was a key issue with Garuda's fleet during the initial restructuring?

• Too many aircraft

• Lack of maintenance

• Wrong types of planes for routes

• Excessive fuel consumption

How did the 2002 Bali bombings affect Garuda Indonesia?

• Increased demand for flights

• Improved service quality

• Severe drop in passenger numbers

• Expansion into new markets

What was a major factor that helped Garuda achieve profitability by 2002?

• Strong brand within Indonesia

• Increased fuel prices

• Expansion into Europe

• Government subsidies

What was the impact of the 2002 Bali bombings on Garuda's service quality?

• Became the best in the region

• Remained unchanged

• Improved significantly

• Deteriorated noticeably

What was a significant challenge faced by the new CEO, Imesh Assata, in 2005?

• Lack of brand recognition

• Overstaffing issues

• A PR crisis involving a pilot

• Excessive government interference

What was one of the conditions Imesh Assata set before accepting the CEO position?

• Increased government involvement

• No additional capital from the government

• Government should decide flight routes

• Freedom to choose the management team

What bold decision did Garuda's new CEO make to manage the airline's debt?

• Hire more staff

• Default on some debt payments

• Expand into new markets

• Increase ticket prices

What was a major challenge in Garuda's debt management strategy?

• Lack of skilled employees

• Excessive government support

• Limited resources and creditor patience

• Overabundance of aircraft