Indonesia's troubled national carrier Garuda is reporting an improved financial performance for 2006 as the first expressions of interest have come in from potential investment partners.

Garuda, seeking relief from its debt obligations, says a net loss of 298.2 billion rupiah ($33 million) was made for the calendar year, down from 688.4 billion rupiah in 2005.

It stopped making principal payments on its debt of nearly $800 million at the end of 2005, but has continued to make interest payments as talks have been taking place with key creditors on a hoped-for debt restructuring. Indonesia's government is looking for a strategic investor to take a stake.

Local conglomerate Rajawali Group in January sent an expression of interest to the carrier and to the government.

Source: Airline Business