Garuda Indonesia’s parent has appointed a new finance director to the airline, according to a person familiar with the matter, as the state-owned carrier attempts to improve its balance sheet and expand its international network.
Balagopal Kunduvara, divisional vice president of financial services at Singapore Airlines (SIA), will take the job from Prasetio, who only goes by one name and who has been in the role since late 2020. Kunduvara has spent over two decades at Singapore’s flag carrier, starting off as an engineer in 2000.
His appointment has been signed off on by sovereign wealth fund Danantara, which controls Garuda, and he’s scheduled to start in October, the person said, asking not to be identified because the details are still private.
Representatives from Garuda, Danantara and SIA didn’t respond to requests for comment. Kunduvara also didn’t immediately respond to a message left for him.
Indonesia’s flag carrier is facing significant financial challenges despite increases in passenger numbers and revenue. Operating costs are spiraling while the airline has several planes grounded due to maintenance delays, with some suppliers demanding upfront payment for parts and services.
It appointed a new chief executive officer in Wamildan Tsani Panjaitan last November and completed a major debt restructuring in 2022 to help it recover from Covid-19.
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Danantara has already extended a US$405 million ($518.03 million) loan to Garuda and the airline could receive US$800 million to US$1.2 billion more from the sovereign fund to assist with payments to maintenance and leasing companies, Bloomberg reported in July.
The 76-year-old carrier is too important to Indonesia to fail. As well as being a major employer, it, along with a handful of low-cost airlines, is a key mode of transport for residents in a country made up of 17,000 islands over an area spanning the distance from New York to London.
Garuda is also in talks to expand its fleet as it seeks to broaden its international network and is discussing buying between 50 and 75 jets from Boeing Co., including 737 Max 8 and 787-9 models, Panjaitan said in an interview in July.
