Statement on behalf of Nordic Aviation Capital

Nordic Aviation Capital (NAC, The Company), the world’s largest regional aircraft leasing company, has noted media coverage of a commercial issue between NAC and Garuda Indonesia, a flag carrier airline.

Garuda made the decision to directly acquire 6 CRJ-1000 aircraft from Bombardier all of which Garuda has operated since 2012. These aircraft were selected by Garuda prior to any engagement with NAC. Subsequently Garuda selected NAC to provide a further 12 CRJ-1000 aircraft under a lease agreement which ends in 2027.

For the avoidance of doubt, NAC is not party to any investigation into the selection of the aircraft by Garuda in 2012 and there has been no allegation of any wrong doing on the part of NAC in relation to the placement of the aircraft.

Last year, in light of the global pandemic and Garuda’s difficult trading environment, NAC had extensive discussions with the airline to help the their cash position during the crisis.

NAC has continued these discussions but there has been no agreement to date and no termination notice has been received. The lease agreements thus remain in full force and effect and NAC expects Garuda to continue to honour its contractual commitments.

While NAC is sympathetic to the commercial difficulties of Garuda, it is confident of its position and absolutely determined to protect its commercial interest.