PT Garuda Indonesia (Persero) Tbk stated that it would save around US$220 million in rental costs for 12 Bombardier CRJ 1000 aircraft after the unilateral termination of the cooperation contract with Nordic Aviation Capital (NAC).

"If we are nominated on February 1, 2021, until the end of the contract period, which is 2027, we will save more than US$220 million. This is our effort to reduce the disadvantages of using the aircraft," said the President Director of Garuda, Irfaniaputra, in an online press conference, Wednesday (10/2).

He emphasized that Garuda must bear the losses due to the plane of more than US$30 million per year. This amount is not balanced with the cost of renting an aircraft of around US$27 million.

Therefore, since February 1, 2021, Garuda Indonesia has terminated the cooperation contract unilaterally for the 12 Bombardier CRJ 1000 aircraft rental.

"We will use the excuse of an investigation carried out by the British anti-riot agency, the Serious Fraud Office (SOF), which is investigating the alleged bribery of Garuda personnel with aircraft manufacturer Bombardier to NAC," he said.

He added that the decision to terminate the cooperation contract was not an emotional act but was commercial in nature and had a legal basis.

Meanwhile, Garuda's Boeing 737 800 will replace the 12 Bombardier CRJ 1000 aircraft to serve their routes.

"And, we have no intention shortly to buy new aircraft to serve these routes. We will maximize the existing aircraft to help it, " Irfan said.