Garuda Mulls Buying 20 Airbus Jets
JAKARTA ~ Flag carrier Garuda Indonesia is considering buying 20 Airbus A320 aircraft, worth about US$1.3 billion, airline director Ari Sapari said on Thursday.
“It is still just a discussion; we still need some evaluation,” Sapari said, adding that negotiations with Airbus had not yet begun.
He said that the purchase of the 20 jets would be “in line with Garuda’s plan to develop our operations.”
Late last year, Garuda signed a contract to purchase 25 Boeing 737-800 NG aircraft, which are expected to be delivered in stages from May 2009 to February 2012. The airline is also awaiting delivery of three Airbus A330-300s, part of nine aircraft under order.
Garuda Indonesia has been facing fierce competition from regional and low-cost carriers and has been struggling to pay off its debts.
In 2006 its net loss narrowed to Rp197 billion (US$21 million) from a loss of Rp688.47 billion the year before.
But Garuda returned to the black in the first half of this year, reporting a Rp148-billion profit amid rising passenger numbers and higher air fares.Filed under: