European
aircraft manufacturer Airbus will build 11 more long-haul passenger jets for
Indonesia. The deal, worth almost two billion euros ($2.5 billion), will help
the company overcome its current shortage of orders.
Indonesia's
flag carrier Garuda will purchase 11 A330 jets for long-distance travel from
Europe's leading plane producer, Airbus. The deal seems more than welcome for
the multinational company, which has only secured firm orders for 90 planes in
the first quarter of 2012, compared with more than 400 for US rival Boeing.
The current
order is worth 1.9 billion euros ($2.5 billion) at catalog prices. The new
Airbus planes will be driven by UK-supplied Rolls-Royce engines.
"This
deal between Airbus and Garuda Indonesia Airlines is great news for the UK
aerospace industry," British Prime Minister David Cameron told reporters
after arriving in Jakarta for a 24-hour visit.
The 11
long-haul A330s will increase by two thirds the number of passenger jets
already delivered to Garuda, which is majority state-owned. Its main domestic
rival Lion Air in February signed a record $22-billion deal for planes from
Boeing.
Rising
number of passengers
Garuda's
Chief Executive, Emirsyah Satar, said he planned to use the new Airbus planes
to expand in the Asia-Pacific region, including China, South Korea and
Australia.
Indonesia
has been witnessing a rapidly expanding aviation sector, as a growing middle
class and business executives opt to travel by air across an archipelago of
17,000 islands. It's considered a more reliable way to travel, because many
islands lack good roads or railways and ship connections are sporadic.
Asia and
the Middle East currently offer the best prospects for plane sales by Airbus
and other major jet manufacturers like Boeing, Bombardier or Embraer.
hg/gb
(Reuters, dapd, AFP)