The Indonesian government denied local press reports that the government would sell part of its shares in cash-strapped flag carrier Garuda Indonesia to European airlines, an official has said.

"Garuda executives have discussed partnership programs with international carriers, but the talks are not about selling Garuda 's shares," State Minister for State Enterprises Sugiharto was quoted Monday by the English-language daily The Jakarta Post as saying.

On a reported meeting between the executives of Garuda and German carrier Lufthansa, Sugiharto said Garuda was seeking strategic partners to expand its market and increase its passenger numbers, not strategic investors.

Earlier press reports have said that Garuda officials, at the request of shareholders was in Germany recently to talk with Lufthansa on a strategic investment.

Garuda Chief Executive Officer Emirsyah Satar also acknowledged he had met recently with executives of the German airline to discuss the possibility of forging a strategic alliance in IT management and cargo operations.

Similar talks have been held with other international carriers, he said.

Garuda spokesperson Pujobroto said the national flag carrier, which has 794.6 million U.S. dollars in debts, mostly to European creditors, had long been engaged in strategic partnership talks with several European airlines, including KLM and Lufthansa.

Source: Xinhua