<![CDATA[The aviation industry is one of the sectors most vulnerable to external shocks, and PT Garuda Indonesia (Persero) Tbk represents a critical case of financial distress exacerbated by both pre-existing governance weaknesses and the COVID-19 pandemic. This study analyzes cash holding management strategies at PT Garuda Indonesia during the period 2019–2022 using a qualitative descriptive approach with a single case study design. Data were obtained from audited annual financial statements, annual reports, and official documents from the Indonesia Financial Services Authority (OJK) and the Indonesia Stock Exchange (IDX). Analysis was conducted in three stages: time series analysis of financial ratios, content analysis of management disclosures, and theoretical interpretation using trade-off theory, pecking order theory, and agency theory. The findings reveal that cash holding declined sharply from 6.72% (2019) to a critical low of 0.76% (2021), accompanied by a leverage ratio of 184.94% and a current ratio of 0.05x. Three interrelated factors drove this financial distress: the COVID-19 pandemic shock, structural rigidity of the fleet-leasing model, and agency problems reflected in the 2018 financial restatement. Management responded through four strategies: debt restructuring via PKPU, fleet and operational efficiency, external financing optimization including state capital injection (PMN), and governance strengthening. Recovery in 2022 was partial, as the majority of reported profit derived from one-time debt restructuring gains rather than operational improvements. These findings confirm the simultaneous relevance of all three theories in explaining cash holding dynamics in state-owned aviation enterprises during crisis conditions.]]>
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