Garuda Inks Deals to Buy 30 Jets From Airbus, Up to 60 From Boeing

Jakarta Globe, Tabita Diela, Jun 15, 2015

An Airbus A350 jetliner participates in a flying display during the 51st Paris
 Air Show at Le Bourget Airport near Paris on Monday. Garuda Indonesia intends
 to buy 30 of the jets in a deal worth an estimated $9 billion. (Reuters Photo/
Pascal Rossignol)

Jakarta. Flag carrier Garuda Indonesia intends to purchase up to 30 new wide-body aircraft from European plane maker Airbus and up to 60 from its US rival Boeing.

Both manufacturers released statements at the Paris Air Show on Monday that said the Indonesian state-controlled airline had signed letters of intent to purchase the new jets.

Airbus announced that Garuda planned to buy 30 of its new A350 XWB passenger jets, while Boeing said the airline intended to buy 30 787-9 Dreamliners and up to 30 737 MAX 8 aircraft.

“Following our success in revitalizing our regional operation in Asia and the Pacific, the development of our long haul network will be a priority in the coming years,” Arif Wibowo, Garuda’s chief executive, said in the statement released by Airbus.

Airbus said Garuda planned to use the new wide-body planes, able to fly from Jakarta or Bali to Europe non-stop, to expand its medium- and long-haul networks.

John Leahy, Airbus’s chief operating officer, said the new jet, which first went into commercial service in January with Qatar Airways, was performing well.

“The aircraft has set the new standard for the larger segment of the mid-size wide-body market and is already proving to exceed expectations in service with its first operator,” he said in the statement.

“We look forward to seeing the A350 XWB flying in the colors of Garuda Indonesia as it extends its reach to more destinations across the world,” Leahy said.

Airbus says it has booked orders for 244 of the planes from operators in the Asia-Pacific region, or almost a third of the 780 orders booked worldwide. The Garuda deal is estimated at $9 billion at list prices.

Boeing, meanwhile, said it would work with Garuda to finalize the order for the new American jets.

“The 787-9 and 737 MAX will be a great complement to Garuda’s current Boeing airplanes, providing them with additional capability and superior economics and their customers with an exceptional flying experience,” said Ray Conner, president and CEO of Boeing Commercial Airplanes.

In addition to the new order, Boeing said Garuda also reconfirmed its intent to buy 50 737 MAX 8s, originally announced in October last year.

Arif said Garuda was upead that the orders of the new planes, all of which boast superior fuel-efficiency, range capability and technology from their predecessors, would help the airline reposition itself as a leading premium carrier in the long-haul market out of Asia.

Garuda flies to 76 destinations worldwide with nearly 600 daily flights and a fleet of 169 aircraft with an average age of less than five years.

There were no details on the time frame for the deliveries of the new planes.

GlobeAsia