Sign up | Log in



Home  >>   Daily News  >>   Indonesia  >>Aviation  >> Govt tells Garuda to double fleet in 5 years
NEW UPDATES Asean Affairs  24 June 2015  

Govt tells Garuda to double fleet in 5 years

State-run airline PT Garuda Indonesia has been urged to expand its business more aggressively in both domestic and international markets, as the government tells the flag carrier to more than double its aircraft fleet in five years after the company placed orders for 60 new aircraft recently.

Garuda president director Arif Wibowo said on Monday that the State-Owned Enterprises (SOE) Minister Rini Soemarno had requested that his firm have a fleet of at least 450 aircraft in five years, up from 190 this year.

“Garuda has been urged to expand aggressively with both organic and non-organic growth so that it can conquer domestic, regional and international markets,” he said after a closed-door meeting at the SOE Ministry on Monday.

Garuda estimated that it could reach the target in 10 years, while the minister wanted it faster, in around five years, he added.

Garuda had recently placed orders for 60 new aircraft, of which 30 were Boeing 737 MAX 8 and the other 30 would be either Boeing 787-9 or Airbus A350 XWB, Arif said.

Garuda has not disclosed the value of the orders, but Bloomberg has previously reported that the combined price for the 30 MAX 8s and 30 787-9s is US$10.9 billion, while the price for 30 A350s is put at $9.1 billion.

Garuda aims to add more medium-and long-haul flights in the future as it plans to have 53 wide-body aircraft by 2025, up from 35 this year.

The aggressive expansion is a strategic way to boost Garuda’s competitive edge amid tough competition in the challenging aviation industry.

The SOE Ministry has set a target of getting 19 of Indonesia’s state-run enterprises listed on Forbes’ 2,000 best companies in 2019.

Arif declined to reveal the size of investment needed for both organic and non-organic growth and to add more aircraft in the future, but he said that his firm would review all possible funding options.

“We always explore any available opportunity. We’ve already obtained funding from the Asia market so far, so we’ll seek opportunities for funding from non-Asian sources, including the US,” he told reporters.

The firm has previously raised $500 million from global Islamic bonds issuance and a credit facility commitment from Bank of China (BOC) Aviation.

The global bonds will be used to refinance the company’s $350 million in debts maturing this year and to fund part of the firm’s capital expenditure (capex).

Garuda, meanwhile, has utilized $130 million of a credit facility from BOC Aviation to refinance pre-delivery payments (PDP) for Airbus aircraft for its budget carrier Citilink.

Garuda will have a total of 190 aircraft by end of this year, consisting of 97 Boeing, 24 Airbus, 18 CRJ, 11 ATR aircraft operating under the brand Garuda Indonesia as well as 36 Airbus and four Boeing aircraft operated by its budget carrier Citilink, according to the firm’s internal data.

Garuda itself was ranked the eighth-best airline in the world and the world’s best cabin staff at the 2015 Skytrax World Airline Awards.

The firm, listed on the Jakarta Stock Exchange (IDX) as GIAA, reversed $168.04 million of net losses in the January to March period last year to $11.4 million of net profits in the same period this year.

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below

Today's  Stories                           June  23 , 2015 Subsribe Now !
• Supervision required to handle new credit  Subcribe: Asean Affairs Global Magazine
• Govt tells Garuda to double fleet in 5 years 
• Consumer prices in Singapore fell 0.4% in May
Research Reports
on Thailand 2007-2008

• Textiles and Garments Industry
• Coffee industry
• Leather and footwear industry
• Shrimp industry

• Govt revises down GDP growth forecast
• Costs thwart potential exports
Asean Analysis                   June 24, 2015
• Asean Analysis June 24, 2015
Silk Road Tourism addressed in Xian/China
Advertise Your Brand

Asean Stock Watch  June 23,   2015
• Asean Stock Watch-June  23, 2015
The Biweekly Update
• The Biweekly Update June 12, 2015

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent
• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore • Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline • Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More






1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

Our Products | Work with us | Terms of Use | Site Map | Privacy Policy | Refund Policy | Shipping/Delivery Policy | DISCLAIMER |

Version 5.0
Copyright © 2007-2015 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand