The Extraordinary General Meeting of Shareholders of Meeting of Garuda Indonesia Agreed on Right Issue

In accordance with the meeting’s agenda, the Extraordinary General Meeting of Shareholder of PT Garuda Indonesia (Persero) Tbk (IDX: GIAA) held on March 24, 2014 in Jakarta, had agreed the following:

Approval for the Limited Public Offering I of the Company in context of the Issuance of Pre-emptive Rights (HMETD)
Approval for the Amendment of Articles of Association
Article 4 paragraph (2) and paragraph (3) regarding Limited Public Offering I of the Company

The Extraordinary General Shareholder’s Meeting, attended by 19.231.450.069 shareholders or 84,941 percent of the total number of Garuda Indonesia’s shareholders, approved the Company’s plans to offer 3.227.930.633 ordinary shares of Series B or around 12,48% of the enlarged capital.

Through this corporate action, each of the 701.409 shareholders whose name are on the Register of Shareholders 4 April 2014 at 16.00 WIB holds 100.000 right issue, of which every one right issue gives the holder the right to purchase at Rp460 per share. The company estimates to acquire as much as Rp1.484.848.091.180 in this first right issue.

Garuda Indonesia will take advantage of the funds for its fleet modernization program, including the delivery of its several types of airplanes, namely B737Series, B777 Series, A330 Series, and A320 Series. The acquired funds will be allocated for Pre-Delivery Payment (PDP) for the purchase of a new aircraft, for security deposit for a leased aircraft, and for final payment for the purchase of a new aircraft, as well as for other capital expenditure required for the fleet development, such as spare parts aircraft components, as well as supply of aircraft engine.

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

Continuing with the company’s fleet expansion programm, in 2014, Garuda Indonesia is expecting 27 new aircraft, consisting tw0 (2) Boeing 777-300 ER, four (4) Airbus A330, twelve (12) Boeing 737-800NG, three (3) Bombardier CRJ1000 NextGen, and six (6) ATR72-600. Through the “Quantum Leap 2011-2015” program, Garuda Indonesia will operate as many as 194 aircraft by the year 2015 each aged on average under 5 years old.