Latest news with #Boeing737Max
Business Times
2 days ago
- Business
- Business Times
Garuda new 737 plane's higher rent may strain finances further
[JAKARTA] Garuda is paying twice as much to lease its latest Boeing 737 Max jet than it does for the older 737 planes in its fleet, another potential blow to its finances as it tries to return to profitability. The struggling Indonesian airline is paying around US$400,000 per month for the 737 Max 8 it has leased from BOC Aviation, according to people familiar with the matter. The state-owned carrier pays on average US$200,000 a month for its existing older Boeing 737-800 fleet, the people said, asking not to be identified discussing details that are private. BOC Aviation declined to comment. Representatives for Garuda didn't respond to a request for comment. Garuda, which is now owned by Indonesia's sovereign wealth fund Danantara, reported a full year loss in 2024 for the first time since restructuring nearly US$10 billion of debt in 2022. While the new Max 8 offers better fuel economy than the older planes, it's not clear whether the savings would be enough to compensate for the higher leasing costs. Outside of the difference in the age of the airframe, the doubling of the lease cost can in large part be attributed to the discounted rental prices that Garuda managed to get from its lessors during those debt restructuring negotiations. Danantara extended a US$405 million loan to Garuda just days before the airline agreed to lease the additional 737 Max. On Friday, the plane was en-route to Indonesia, according to data from flight tracking website FlightRadar24. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Garuda is already having trouble keeping its existing fleet in the air, with about 10 per cent of its planes grounded as recently as May as it struggled to make maintenance payments. Nearly 16 per cent of revenue in 2024 was for maintenance and repairs, the highest ratio among flag carriers globally, data compiled by Bloomberg show. Garuda could receive US$800 million to US$1.2 billion more from Danantara to assist with payments to maintenance and leasing companies, Bloomberg reported earlier this week, citing people familiar with the matter. Further pressure on the airline may come as it has to take new aircraft after Indonesian President Prabowo Subianto reached a trade deal with US leader Donald Trump that included the purchase of 50 Boeing aircraft. That could force Garuda to agree to a deal under terms it doesn't necessarily favour and with jets it doesn't actually need. Trump announced in a social media post on Tuesday that Indonesia will order 50 aircraft, including 'many' of Boeing's larger 777 planes, without disclosing a buyer. Garuda chief executive officer Wamildan Tsani Panjaitan has previously said he's in talks to buy 50 to 75 Boeing aircraft, including 737 Max and 787-9 Dreamliner models. BLOOMBERG
South China Morning Post
3 days ago
- Business
- South China Morning Post
Trump's trade deal prompts Garuda Indonesia to get on board Boeing 737 Max it once shunned
Five months after a Boeing Co. 737 Max aircraft operated by Lion Air crashed into the Java Sea in 2018, Indonesian flag carrier PT Garuda Indonesia tried to cancel its remaining order for the same model. Now, the country is working to revive that deal as it seeks to forge favourable ties with US President Donald Trump's administration. Trump announced in a social media post on Tuesday that Indonesia will order 50 aircraft, including 'many' of Boeing's larger 777 planes. While Trump did not disclose a buyer, Garuda CEO Wamildan Tsani Panjaitan had previously said he is in talks to buy 50 to 75 Boeing aircraft, including 737 Max and 787-9 Dreamliner models. The accord points to the intertwined political and economic interests whenever Trump negotiates with foreign leaders. The US president has previously announced aircraft purchases while visiting countries including Qatar, or when he has hammered out trade agreements with the likes of Vietnam or the UK. In Indonesia's case, Trump said he got the deal over the line in direct negotiations with President Prabowo Subianto during a phone call. The dilemma for Boeing is how to restore or expand the existing 49-jet Max order without leaving Garuda in a financial and strategic bind. The airline is already having trouble keeping its existing fleet airworthy, with at least 15 jets grounded as recently as May as it struggles to make maintenance payments.
Business Times
3 days ago
- Business
- Business Times
Trump's trade deal pushes Garuda to learn to love 737 Max again
[JAKARTA] Five months after a Boeing 737 Max aircraft operated by Lion Air crashed into the Java Sea in 2018, Indonesian flag carrier Garuda Indonesia tried to cancel its remaining order for the same model. Now, the country is working to revive that deal as it seeks to forge favourable ties with US President Donald Trump's administration. Trump announced in a social media post on Tuesday (Jul 15) that Indonesia will order 50 aircraft, including 'many' of Boeing's larger 777 planes. While Trump did not disclose a buyer, Garuda chief executive officer Wamildan Tsani Panjaitan had previously said he's in talks to buy 50 to 75 Boeing aircraft, including 737 Max and 787-9 Dreamliner models. The accord points to the intertwined political and economic interests whenever Trump negotiates with foreign leaders. The US President has previously announced aircraft purchases while visiting countries including Qatar, or when he's hammered out trade agreements with the likes of Vietnam or the UK. In Indonesia's case, Trump said he got the deal over the line in direct negotiations with President Prabowo Subianto during a phone call. The dilemma for Boeing is how to restore or expand the existing 49-jet Max order without leaving Garuda in a financial and strategic bind. The airline is already having trouble keeping its existing fleet airworthy, with at least 15 jets grounded as recently as May, as it struggles to make maintenance payments. At the same time, the state-owned carrier, alongside the Danantara sovereign wealth fund that owns Garuda, is under pressure to move quickly with an announcement to please Trump, according to people familiar with the discussions. The airline and Boeing do not yet have an agreement on the models and quantities that would typically be in such an announcement, said the sources, who asked not to be identified discussing private matters. Boeing referred any questions to Garuda. The airline and its owner did not immediately respond to requests for comment. A NEWSLETTER FOR YOU Friday, 8.30 am Asean Business Business insights centering on South-east Asia's fast-growing economies. Sign Up Sign Up On its own, Garuda does not even have the funds to finance the earlier 737 Max agreement, the sources said. That may prompt Danantara to step in by providing some sort of guarantee or a shareholder loan similar to the US$405 million it put forward last month, the sources said. Garuda may receive between US$800 million and US$1.2 billion more from Danantara to assist with payments to maintenance and leasing companies, they added. As a result, any plane deal could be structured as a purchase while the parties discuss financing options with Danantara and lessors for a later stage, the sources said. But given the weighty political implications, Garuda may feel pressure to agree to a deal under terms it does not necessarily favour and with jets it does not actually need, one of the sources said. Trump is known to combine state visits with tariff announcements to flex his deal-making skills. During his tour of the Middle East, he announced an aircraft accord in every country he visited, including a record plane purchase by Qatar Airways. Not all of those transactions are necessarily what they appear to be. Trump has previously announced inaccurate sizes for accords, wrong numbers of purchased jets or has mixed up aircraft types. He's also presented old agreements as new ones. Some deals that were announced during his first term meanwhile, have since fallen through. At this point, Garuda only operates eight older 777-300 aircraft, raising the question of why the airline would want to buy Boeing's yet-to-be-certified successor in large quantities, as Trump has suggested. The earlier 737 Max order still sits on Boeing's books under a special US accounting category for at-risk deals that are not likely to materialise, the sources said. The state-owned carrier sank back into the red in 2024 after an almost US$10 billion debt restructuring failed to revive its fortunes. That performance is in contrast to its peers in the region that are profitable as they benefit from a rebound in travel demand after the pandemic. BLOOMBERG
Bloomberg
3 days ago
- Business
- Bloomberg
Trump's Trade Deal Pushes Garuda to Learn to Love 737 Max Again
Five months after a Boeing Co. 737 Max aircraft operated by Lion Air crashed into the Java Sea in 2018, Indonesian flag carrier PT Garuda Indonesia tried to cancel its remaining order for the same model. Now, the country is working to revive that deal as it seeks to forge favorable ties with US President Donald Trump's administration. Trump announced in a social media post on Tuesday that Indonesia will order 50 aircraft, including 'many' of Boeing's larger 777 planes. While Trump didn't disclose a buyer, Garuda Chief Executive Officer Wamildan Tsani Panjaitan had previously said he's in talks to buy 50 to 75 Boeing aircraft, including 737 Max and 787-9 Dreamliner models.
Time of India
4 days ago
- Business
- Time of India
Top 10 most controversial CEOs in the world from Elon Musk to Mark Zuckerberg
In the high-stakes world of business, a CEO is expected to lead with vision, maximise profits, and steer companies through turbulent markets. But with great power comes greater scrutiny. Some of the world's most controversial CEOs have seen their reputations plummet due to corporate scandals, toxic work cultures, ethical lapses, or sheer arrogance. Whether through reckless financial decisions, mistreatment of employees, or unchecked ambition, these leaders became cautionary tales of what happens when power is misused. Here's an in-depth look at 10 most controversial CEOs in the world as reported and the lessons they leave behind. List of world's most controversial CEOs Sno. CEO Company and Role Major Controversies 1 Elon Musk CEO of Tesla, SpaceX, former CEO of Twitter (X) Known for SEC violations, COVID misinformation, erratic leadership, mass layoffs at X, and political entanglements via government advisory roles. 2 Mark Zuckerberg CEO of Meta (formerly Facebook) Accused of enabling privacy breaches, election misinformation, and overseeing Meta's toxic content environment; widely criticized for refusing to step down. 3 Larry Page Co-founder of Google, former CEO of Alphabet Criticized for being aloof, socially disengaged, and weakening team morale; seen as a withdrawn leader despite Google's outwardly friendly image. 4 Jeff Bezos Founder of Amazon, Owner of The Washington Post Criticized for poor worker treatment, anti-union efforts, editorial interference at The Washington Post, and growing concerns over monopolistic and political influence. 5 Lloyd Blankfein Former CEO of Goldman Sachs Tied to Wall Street's 2008 collapse, fraud charges, and the 1MDB corruption scandal; accused of misleading both Congress and clients. 6 Carly Fiorina Former CEO of Hewlett-Packard (HP) Oversaw mass layoffs, exported tech to Iran, tripled her own pay amid cuts; HP stock rose after her forced resignation in 2005. 7 Travis Kalanick Co-founder of Uber, Founder of CloudKitchens Built a toxic 'bro' culture, faced sexual harassment scandals, and lawsuits over deceptive business practices and unsafe workplaces. 8 Adam Neumann Co-founder & Former CEO of WeWork Embodied startup excess and self-dealing; spent millions on homes and a jet, leading to IPO failure and board-mandated resignation. 9 Sam Bankman-Fried Founder & Former CEO of FTX Convicted of $10B+ financial fraud, insider trading, and manipulation of FTX assets; sentenced to 25 years in prison. 10 Dave Calhoun Former CEO of Boeing Took over post-crisis but failed to restore safety culture; multiple FAA safety violations and repeat technical failures in Boeing 737 Max jets. Top controversial business leaders Elon Musk Elon Musk is hailed as a visionary at Tesla, SpaceX, and formerly Twitter (now X). Yet, his volatile behavior, misleading claims, and political entanglements often steal the spotlight. From SEC lawsuits over tweets to promoting misinformation during the COVID-19 pandemic, Musk's antics have had real consequences. His chaotic Twitter acquisition led to mass layoffs, advertiser boycotts, and content moderation breakdowns which turns him down in the list of most controversial CEOs in the world. Critics say his ego and erratic leadership hurt innovation. Musk's involvement in the Department of Government Efficiency (DOGE) and declining Tesla profits underscore how personality clashes with accountability can jeopardize even revolutionary enterprises. Mark Zuckerberg As the CEO of Meta (formerly Facebook), Mark Zuckerberg transformed global communication. But he has faced intense backlash for privacy violations, election misinformation, and a disregard for accountability which listed him in the world's most controversial business leader. Allegations range from hacking rivals to allowing rampant misinformation during the 2016 and 2020 elections. His role in the Cambridge Analytica scandal and Meta's removal of fact-checking systems in 2025 sparked public outrage. Employees have staged protests, and whistleblowers argue Facebook can't regain trust while Zuckerberg remains CEO. His controversial decisions reflect a wider debate on ethics in tech leadership. Larry Page Larry Page, the co-founder of Google and former CEO of Alphabet, is lauded for his role in revolutionising the digital world. From Google Ads to Google Wallet, his contributions have changed how we search, shop, and work. But behind this innovation lies a deeply criticised leadership style which made him the next controversial CEO in the world. Page was reportedly aloof, rude, and disengaged during meetings, often described as an "egomaniacal" boss who avoided human interaction. While he remains on Alphabet's board, many insiders felt his detachment stifled team morale. His story reflects the risks of brilliant minds failing to balance genius with empathy. Lloyd Blankfein Lloyd Blankfein, former CEO of Goldman Sachs, once enjoyed a 97% approval rating from employees. But during the 2008 financial crisis, his firm became a symbol of Wall Street greed. Under his leadership, Goldman Sachs was charged with fraud by the SEC for misleading investors about subprime mortgage investments. Despite testifying that the company never bet against clients, a Senate panel accused him of misleading Congress. Later, Blankfein was named in a $79.5 million shareholder settlement over the 1MDB scandal. While never convicted, his reputation remains tarnished by accusations of dishonesty and corporate deception. Carly Fiorina Carly Fiorina made history as the first female CEO of a Fortune 100 company when she took over Hewlett-Packard (HP). However, her tenure was marred by massive layoffs, pay cuts, and controversial exports to Iran. Fiorina tripled her salary and bought a private jet even as thousands of employees lost jobs or faced harsh conditions. She resigned in 2005, and HP's stock immediately rose by nearly 7%. Her failed political bids further damaged her image. Fiorina's downfall reveals how misaligned priorities and poor leadership ethics can undercut even a promising legacy. Jeff Bezos J eff Bezos, the founder of Amazon and owner of The Washington Post, ranks among the most controversial CEOs in the world. His leadership has drawn sharp criticism for Amazon's harsh warehouse conditions, anti-union tactics, and alleged monopolistic practices. In 2025, Bezos fueled further outrage by reportedly interfering in Washington Post editorial policies, leading to resignations and public backlash. Critics argue his influence over both commerce and media threatens journalistic integrity and market fairness. While Bezos is admired for building a tech empire, his growing control across industries continues to raise serious ethical and democratic concerns. Travis Kalanick Travis Kalanick, co-founder and former CEO of Uber, is credited with globalizing ride-sharing. However, under his leadership, Uber became infamous for its toxic work culture, sexual harassment, and bullying tactics. He stepped down in 2017 amid pressure from the board and investors. Later, he founded CloudKitchens, where similar complaints about workplace toxicity emerged. Lawsuits over gender discrimination, deceptive practices, and unsafe conditions continue to follow him. Kalanick's story is a case study in how unchecked aggression and arrogance can destroy organizational trust. Adam Neumann Adam Neumann, co-founder and former CEO of WeWork, epitomized startup excess. He raised billions in venture capital, expanded rapidly, and envisioned a 300-year family dynasty. But WeWork's financial instability, lavish spending, and self-dealing practices led to a failed IPO and Neumann's ouster in 2019. From buying mansions to renting properties back to WeWork, his actions blurred ethical lines. Dramatized in WeCrashed, his fall is a warning against founder overreach and mismanagement masked as vision. Sam Bankman-Fried Sam Bankman-Fried, founder of FTX, was once hailed as the future of cryptocurrency. But in 2022, FTX collapsed amid revelations of financial fraud, insider trading, and the misappropriation of over $10 billion. Convicted in 2023 and sentenced to 25 years in prison, his case devastated the crypto industry and investor confidence. SBF's downfall shows how lack of transparency and regulation in emerging sectors can lead to historic scandals. His legacy is a reminder that innovation without integrity is doomed. Dave Calhoun Dave Calhoun, former CEO of Boeing, took over during the fallout from two fatal 737 Max crashes. While not responsible for the original incidents, his tenure was riddled with quality control failures, layoffs, and regulatory scrutiny. Despite FAA agreements to improve safety, Boeing faced repeated issues—most recently in 2024 with a door flying off mid-air. Under his leadership, Boeing failed numerous safety audits, delaying production expansion. Calhoun's leadership underscores how crisis mismanagement and failure to enforce reforms can worsen an already damaged reputation. Also Read | Top 10 richest Indians in the US 2025 including Jay Chaudhry, Vinod Khosla, Sundar Pichai and more
