“We fully respect and wisely view what LCIA has decided in its authority as an international arbitration dispute settlement institution,” Garuda Indonesia president director Irfan Setiaputra said in a written statement released on Friday.
Garuda is coordinating with its team of lawyers to consider the steps it will take to face the decision, he added.
The arbitration decision follows a lawsuit filed by aircraft lessor Helice Leasing S.A.S and Atterisage S.A.S (Goshawk) against the national carrier with the LCIA in early 2021 over the payment of aircraft lease.
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Garuda has so far held intensive communication with Goshawk to explore the possibility of reaching the best agreement as part of efforts to find an out-of-court settlement to the company’s obligation, Setiaputra said.
One of the efforts is exploring the possibility of restructuring schemes and other supporting strategies, he added.
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“We are quite optimistic that our endeavor will yield the best agreement for both sides, particularly by taking into account the continuation of the company’s business in the midst of the pandemic, which has put the performance of the aviation industry under pressure,” he added.
He assured that the operational activities of the airline will run normally despite the arbitration decision.
Garuda is committed to providing safe, convenient, and healthy flight services to all passengers, with strict adherence to health protocols, he remarked.
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