Garuda Said to Secure $4.5b Financing Commitment From BOC Aviation


JUNE 17, 2015

Jakarta. Indonesia’s flag carrier Garuda Indonesia has secured a financing commitment of $4.5 billion from BOC Aviation, a global aircraft leasing company and member of Bank of China Group, to help finance purchase of new planes, local media reported on Wednesday.

Business newspaper Bisnis Indonesia reported, quoting state-enterprise minister Rini Soemarno, that the loan signing ceremony between Garuda’s chief Arif Wibowo and chief executive of BOC Aviation Robert Martin, took place on the sideline of Paris Air Show, Le Bourguet in Paris, France.

“Garuda can secure its own financing,” said Minister Rini, as quoted by the newspaper.

No further details were unveiled regarding the financing deal.

This week, European plane maker Airbus and US plane maker Boeing announced Garuda’s intention to purchase aircraft from them.

Airbus said in a statement on Monday that Garuda plans to buy 30 of its new wide-body A350 XWB passenger jets, while Boeing said the carrier intended to buy 30 787-9 Dreamliners and up to 30 737 MAX 8 aircraft.

Garuda, which operates a fleet of 169 aircraft, flies to 76 destinations worldwide with nearly 600 daily flights, reportedly aims to expand its long-haul flights.

Arief was quoted by the Airbus statement on Monday as saying that “the development of our long haul network will be a priority in the coming years.”

Sriwijaya Air

Also at the Paris Airshow, Bisnis Indonesia reported that Indonesian airline Sriwijaya Air made a purchase of two Boeing B737-900ER, of which the first plane is scheduled to arrive in August 2015.

The newspaper quoted senior manager corporate communication for the airline, Agus Soedjono, as saying the signing of the purchase for the two B737-900 ER, was made by Chandra Lee, Sriwijaya Air president director Chandra Lee and John Wojick, senior vice president of global sales marketing at Boeing Commercial Airplanes on the sideline of the airshow.

With the two additional aircraft, Sriwijaya and its sister company NAM Air will operate 42 units of Boeing planes.

Sriwijaya, Agus, as quoted by newspaper, also signed a letter of intent to order 20 units of B737-800 and B737 MAX — deliveries of which are expected to take place gradually starting 2016.