Garuda to sell rights shares, plans London flight

REPUBLIKA.CO.ID, JAKARTA -- PT Garuda Indonesia Tbk (Garuda) said it will launch rights issue selling 10 percent of rights shares in the first half of 2014.

"The underwriter for the rights issue will be announced next week," Emirsyah Satar, the president of the nation's flag carrier, said here on Tuesday.

The right issue plan has been approved by the shareholders, Emirsyah said without giving details about the fund to be earned from the share sales.

He only said that the fund would be used for business expansion such as opening of new domestic and international routes and to strengthen capital.

"Next year we will serve direct flights to London," he said, adding the fund would not be used to buy new aircraft.

Funds for aircraft shopping have been available from banks and lessor, he said.

Currently, the airline has 131 units of aircraft and next year there will be an addition of 27 units, he said.