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Garuda Ordering More Planes

25 New Generations 737-800s on Order with First Planes Set to Arrive in May 2009.


Bali News: Garuda Ordering More Planes
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(4/1/2007)

Bisnis Indonesia reports that Garuda Indonesia has confirmed that they will soon order 25 next generation Boeing 737-800 aircraft with delivery to start in May of 2009.

The financial director of the Airline, Alex M.T. Maneklaran, told the press that Garuda has signed a contract with Boeing at the end of 2005 and has paid an initial deposit of US$23 million against the new plane order.

"Prices are still in negotiation, but the current market price is around US$35 -$40 million," explained Maneklaran.

The new planes' delivery will be phased beginning in May 2009 until February 2012 with an initial 8 planes due for delivery in 2009.

According to Maneklaran, the financing of the new aircraft will be facilitated through a consortium controlled lease agreement or via borrowings.

Improving Financial Condition

The Airline's Finance Chief reported good company performance for the period January-February 2007 with a booked profit of Rp. 131 billion (approximately US$14.23 million), a 175% improvement over the same period in 2006 when the airline lost US$18.9 million.

Garuda carried 1.37 million passengers on its international and domestic services during the first two months of 2007.


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