PT Garuda Indonesia (Persero) Tbk. Holds 2014 Annual General Shareholders’ Meeting

LIPUTANSATU - PT. Garuda Indonesia (Persero) Tbk. IDX: GIAA), held their Annual General Shareholder’s Meeting (GSM) on April 2, 2014, which was attended by shareholders holding shares totalling 19.512.388.069 or 86,182 percent of the company‘s total shares.

The annual General Shareholder’s Meeting approved nine points at issue, comprising:

1. To approve and adopt the Annual Report of the Company for 2013, including the Company’s Financial Statements of the Partnership and Environmental Development Program and the Board of Commissioner’s Supervisory report per 31 December 2013;
2. To determine the utilization of net profit from financial year 2013;
3. To determine Directors and Commissioners’ bonuses (tantieme) for 2013, and the salaries, honorariums, and other benefits payable to the members of the Board of Directors and Board of Commissioners of the Company in financial year 2014;
4. To appoint an Independent Auditor to audit the Company’s Financial Statements for the financial year ended 2014, and the Financial Statements of the Partnership and Environmental Development Program for 2014;
5. To approve a delegation of authority to the Board of Commissioners to increase the Company’s issued capital as part of the implementation of the Management and Employee Stock Option Plan (MESOP) Program;
6. To approve a delegation of authority to the Board of Commissioners to increase the Company’s issued capital in implementation of Additional Government Capital Participation in the form of a Jet Engine Test Cell Eks Protocol Loan France that was procured through Department of Communications DIP 1982/1983 (in accordance with Republic of Indonesia Minister of Finance Letter Nomor: S-124/MK.016/1993, dated 28 January 1993);
7. To approve the amendment of the Articles of Association of the Company;
8. To make changes to Company management;
9. To report on the use of the proceeds of the Initial Public Offering and the Shelf Bond Offering Stage I 2013 (Penawaran Umum Obligasi Berkelanjutan).

In 2013, Garuda Indonesia transported 25 million passengers; an increase of 22.3 percent compared to the 20.4 million passengers transported in 2012. Production capacity (availability seat kilometer/ASK) in 2013 also increased by 19.8 percent, from 36 billion in 2012 to 43.13 billion in 2013, whilst Seat Load Factor/SLF reached 74.1 percent, a slight decline compared to last year’s 75.9 percent.

Inline with the increasing numbers of Garuda’s passengers, the company ended 2013 by booking an Operating Revenue of USD 3,72 billion, which was an increase of 7 percent compared to the USD 3,47 billion received in 2012. Meanwhile, in relation to the company’s investment, particularly on the fleet expansion program for Garuda and Citilink, Operating Income decreased to USD 56.4 million in 2013 compared to the USD 168.1 million received in 2012.

Corporate Actions in 2014

In the continuation of its fleet expansion program, in 2014, Garuda Indonesia plans to welcome 27 new aircraft consisting of two (2) B777-300 arcraft, four (4) A330 aircraft, twelve (12) B738 aircraft, three (3) CRJ aircraft, and six (6) ATR 72-600 aircraft. Thanks to these new aircrafts, by the end of 2014 Garuda will have a fleet of aircrafts with an average age of 4.5 years.

In accordance with the result of the company’s Extraordinary General Meeting of Shareholders held on March 24, 2014 in Jakarta, Garuda Indonesia plans to hold a rights issue in the first half 2014. The company will offer 3.227.930.633 ordinary shares of Series B or the equivalent of  12,48 percent of the enlarged capital, priced at Rp. 460 per share. The flagship carrier aims to acquire as much as Rp. 1.484.848.091.180 from the rights issue.

Garuda Indonesia will take advantage of the funds generated by the rights issue, for its fleet modernization program, including the delivery of several types of airplanes, namely: B737 Series, B777 Series, A330 Series, and A320 Series. The acquired funds will be allocated for Pre-Delivery Payment (PDP) for the purchase of the new aircraft, as a security deposit for leased aircraft, and for final payment for the purchase of new aircraft, as well as for other capital expenditure required for the fleet development, such as spare parts, aircraft components, and also the supply of aircraft engines.

The company’s fleet modernization program is carried out to anticipate a rise in air passengers as a result of increased flight frequency and the opening of new routes. The development of new aircraft is intended to improve general efficiency through better fuel efficiency and lower maintenance costs as new airplanes are much more economical than older aircraft.

In line with the airline’s efforts to develop and strengthen its flight network, Garuda Indonesia will operate its new hub by-pass service this year, namely on the Medan – Palembang –Denpasar vv route, Medan – Pontianak – Balikpapan vv route, Medan – Surabaya vv route, Surabaya – Lombok – Kupang vv route, and Surabaya – Ambon vv route, starting in May 2014. The airline also plans to expand its network domestically and internationally by operating a Denpasar – Manado vv new service in June 2014, Makassar – Medan – Jeddah vv, and Surabaya – Jeddah vv, as well as new international destinations to London, Mumbai, and Manilla.

Inline with its commitment to support the Indonesia economic development through the Masterplan for Acceleration and Expansion of Indonesia’s Economic Development (MP3EI) program, whilst offering a wider choice of destinations to the passengers, Garuda Indonesia will also expand its “Explore” ATR72-600 and “Explore Jet” Bombardier CRJ1000 NextGeneration services to more destinations in East Indonesia, namely Pomala, Luwuk, Palopo, Bau-bau, Langgur, Kaimana, dan Pangkalan Bun.

As part of the airline’s effort to become a ‘global player’, in March 2014 Garuda officially joined the SkyTeam global alliance. By joining this alliance, Garuda Indonesia is now able to offer customers a global reach with a seamless and even more convenient travel experience to 1,064 destinations in 178 countries with more than 15,700 flights per day.

 Meanwhile, the General Shareholders’ Meeting also decided on the new organization of the Garuda Indonesia Board of Commissioners, which is as follows:

Previous organizational structure of the Garuda Indonesia Board of Commissioners:

1. Bambang Susantono (Head Commissioner)
2. Wendy Aritenang Yazid (Commissioner)
3. Bagus Rumbogo (Commissioner)
4. Betti Alisjahbana (Independent Commissioner)
5. Peter F. Gonta (Independent Commissioner)
6. Chris Kanter (Independent Commissioner)

New organizational structure of the Garuda Indonesia Board of Commissioners:

1. Bambang Susantono (Head Commissioner)
2. Wendy Aritenang Yazid (Commissioner)
3. Isa Rachmatarwata (Commissioner)
4. Betti Alisjahbana (Independent Commissioner)
5. Peter F. Gonta (Independent Commissioner)
6. Chris Kanter (Independent Commissioner)

While the organizational structure of Garuda Indonesia Board of Directors had not changed in today's Annual General Shareholders’ Meeting

Jakarta, April 02, 2014
PT GARUDA INDONESIA (PERSERO) TBK.
VP CORPORATE COMMUNICATIONS

PUJOBROTO