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Garuda Shopping for More Aircraft

Indonesian National Carrier Sets Aside US$100 for New Planes in 2010.


Bali News: Indonesia, Garuda, Boeing, Airbus, New Aircraft.
Click Image to Enlarge

(11/14/2009)

The Jakarta Post reports that Garuda Indonesia has allocated US$100 million for expenditure in 2010 as the first of five yearly installments that will increase the airline's present fleet from 67 to 116 aircraft.

Garuda's finance director Eddy Purwanto told the press, "We plan to spend $100 million in capital expenditure in 2010 to buy more planes as well as to fulfill Garuda's other operational expenditure."

2010 will be the third time Garuda has spent more than US$100 million is a single year.

In 2009, Garuda has acquired new Airbus and Boeing aircraft.

Garuda has ordered 10 new Boeing 777-300ERs and 50 Boeing 737-800s. Previously, the company took delivery of three new Airbus 330-200s and one Boeing 737-800.

"We will increase our routes and increase the number of flights from 1,700 times per week in 2009 to 3,000 times per week in 2014," said Emirsyah Satar, the CEO of the airline.

He said that the company was targeting to serve 27 million passengers by 2014, up from 10.1 million passengers recorded in 2008.

Additional funds for the expansion of the airline's fleet will be aide by a 40% initial public offering of its shares in 2010 that is targeted to raise between US$300 to US$400 million in much-needed fresh capital.


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