Indonesia's national carrier Garuda Indonesia has named a senior Singapore Airlines executive as its new finance director, according to sources close to the matter, as the state-owned airline works to strengthen its financial position and grow its global route network.
Balagopal Kunduvara, who serves as divisional vice president of financial services at Singapore Airlines, will replace the incumbent Prasetio, who has held the position since the end of 2020. Kunduvara brings more than 20 years of experience from Singapore's national airline, having joined the company as an engineer in 2000.
The appointment has received approval from sovereign wealth fund Danantara, Garuda's controlling shareholder, with Kunduvara expected to commence his duties in October, according to the source, who requested anonymity as the information remains confidential.
Spokespeople for Garuda Indonesia, Danantara, and Singapore Airlines declined to provide comment when contacted. Kunduvara did not respond immediately to inquiries.
The Indonesian flag carrier continues to grapple with substantial financial pressures despite growing passenger volumes and revenue. Rising operational expenses are weighing on performance, while multiple aircraft remain out of service due to maintenance backlogs, with certain suppliers now requiring advance payments for components and services.
The airline brought in Wamildan Tsani Panjaitan as its new chief executive in November and successfully completed a comprehensive debt restructuring program in 2022 as part of its post-pandemic recovery strategy.
Danantara has already provided Garuda with a US$405 million loan facility, and the airline may secure an additional US$800 million to US$1.2 billion from the sovereign fund to help cover obligations to maintenance providers and aircraft lessors, as previously reported.
The 76-year-old airline plays a crucial role in Indonesia's transportation infrastructure. Beyond its significance as a major employer, it serves alongside several budget carriers as an essential transport link for citizens across a nation comprising 17,000 islands scattered over a distance equivalent to that between New York and London.
Garuda is simultaneously pursuing fleet expansion plans to support its international growth ambitions and is in discussions to acquire between 50 and 75 aircraft from Boeing, including 737 Max 8 and 787-9 variants, according to CEO Panjaitan's recent statements.