Garuda Indonesia has averted a strike threat following an agreement with key employee unions.

An airline spokesman told ATW’s sister publication Aviation Daily the agreement has been signed by management, the pilots’ association and another employee union. As part of the deal, the employee groups have committed to not carry out previous threats to hold a strike this month.

The latest talks were conducted under mediation and were initiated by the Ministry of State-Owned Enterprises, Garuda said. Among the employee concerns were complaints about management performance.

Garuda reported net losses in 2017 and in the first quarter of 2018. However, executives expressed confidence the carrier will achieve a profit in the third quarter. The airline is undertaking a broad turnaround effort, which includes deferring aircraft deliveries to pause fleet growth.

Adrian Schofield,