Plans to release 49 percent of Garuda Indonesia’s shares to strategic investors have been cancelled because the carrier is focusing on its re-structuring programme before an IPO in 2009. Part of the restructuring programme is selling all non-productive assets starting this year, to collect US$75 million, fi nancialdirector Alex Maneklaran said.

The non-productive assets include the Garuda Indonesia building in Jakarta, fi ve DC-10 aircraft, and land. Although no names have been released, the carrier’s subsidiaries will also be auctioned upon the approval of the government (Ministry of State OwnedEnterprises) which is a shareholder.

Maneklaran said the Garuda offi ces will be moved to the Garuda Maintenance Facilities (GMF) at Soekarno Hatta International Airport. Garuda has also requested for a revised payment of its debt to the Export Credit Agency (ECA), which totals US$794 million. – Siktus Harson