Indonesian Airline Garuda in Talks to Delay Delivery of 20 Planes

National flag carrier Garuda Indonesia on Friday (17/11) increased its flight frequency between Jakarta and Batam in the Riau Islands to 40 per week, from 35 previously. (Antara Photo/Muhammad Iqbal)

By : Cindy Silviana | on 1:10 PM September 22, 2017
Category : Business, Corporate News

[Updated at 04:20 p.m. on Friday, Sep 22, 2017]

Jakarta. Indonesia's national airline Garuda Indonesia is in talks with Airbus and Boeing to delay the delivery of 20 planes, the flag carrier said, as it seeks to better utilize its current fleet and trim costs.

Garuda and its budget unit Citilink were supposed to have taken delivery of the aircraft during the two years through to 2019, Chief Executive Pahala Mansury told reporters on Friday, without giving a new date for the delivery.

"We want to focus on the optimization of our existing fleet," Pahala said.

Garuda reported a wider net loss for the first half of 2017, hurt partly by the costs of participating in the government's tax amnesty scheme. Following the loss, the state-controlled carrier also sought consent to amend certain terms on its $500 million global sukuk bonds due 2020.

Pahala did not disclose the model of the delayed planes, but Garuda spokesman Ikhsan Rosan told Reuters they are made by Airbus and Boeing, including A320s ordered by Citilink.

"We don't comment on discussions we may or may not be having with customers," an Airbus spokesman said.

A Boeing spokeswoman said the airline worked with Garuda, as with all of its customers, on how to best optimize the airline's fleet.

Citilink has 25 A320neos on order and Garuda has 50 737 MAX aircraft on order, according to the Airbus and Boeing order books.

Additional reporting by Jamie Freed in Singapore

Reuters

 

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