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Rupiah Slide Grounds Planes

Due to Depreciating Rupiah, Citilink Reduces Order for New Aircraft


Bali News: Indonesia, Citilink, Garuda Indonesia, Arif Wibowo, Airbus, Boeing, Armada, fleet, Rupiah depreciation, fleet expansion
Click Image to Enlarge

(9/8/2013)

Citilink Indonesia, the low-cost subsidiary of Garuda Indonesia, has been forced to change its plans to acquire 10 new Airbus aircrafts, reducing the order to only 8 as the result of the sliding value of the Indonesian Rupiah against the U.S. Dollar.

 
As reported by Bisnis Indonesia, the CEO of Citilink, Arif Wibowo, blamed the smaller aircraft order on the recent rapid depreciation of the Indonesian currency.
 
Said Wibowo: “The plan for next year was to acquire 10 planes, but we have rescheduled that to just 8 planes. So, we will add 8 units and that will happen in June.”
 
Arif explained that the new aircraft would join Citilik’s armada in June after the low season that occurs during the first half of the year.
 
By the end of 2013, Citilink aims to have 31 planes in its fleet. Two new Airbus 320s will be added – one in September and another in November.
 
Citilink has also returned two Boeing 737s to lessors due to the high operating costs of the subject planes.


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