Garuda Skips Aircraft Acquisition in 2018

Garuda Skips Aircraft Acquisition in 2018

Garuda Skips Aircraft Acquisition in 2018. Garuda Indonesia confirms that it will not add any aircraft in 2018, and instead will work to maximize the utilization of its existing fleet. The airline says it has delayed the delivery of its 49 Boeing 737 Max 8s in order from 2017 to 2020. The planes, which will gradually replace their 737-800, are now scheduled to be delivered between 2020 and 2024.

The Indonesian flag carrier will also take three Airbus A330neos in 2019. When asked about the 14 ATR 72-600 in order, the airline only said that the discussions are still ongoing.

FlightGlobal reported last June that Garuda had approached Boeing, Airbus and ATR to defer most of its aircraft deliveries in the coming years amid financial problems. The airline has also said that it is considering eliminating smaller aircraft such as the ATR and Bombardier CRJ from its fleet, and in its latest investor submission lists find a "solution" for the two types of aircraft as a target for 2018.

Garuda's fleet consist such as 14 A330neos, 14 ATR 72s and 49 737 Max 8s per order. Its fleet of 141 aircraft comprises 74 737, 24 A330, 18 CRJ1000, 15 ATR 72 and 10 777.

Low cost unit Citilink meanwhile has 30 A320neos in order, and will receive two this year. Garuda has said that his fleet of five aircraft has been a drag on his finances, and that he can increase capacity by 12% simply by better utilizing existing aircraft.

In a disclosure to the Indonesian Stock Exchange, the company also confirmed a news report that will require between USD 100-200 million in capital expenditures this year.

He adds that he is also studying financing options for the year, with the issue of global bonds being considered.

Garuda reported an operating loss of USD 109 million in the first nine months of 2017, as its attributable net loss widened to USD 222 million, from the loss of USD 44 million a year ago. Low cost unit Citilink also fell to a net loss of USD 44.3 million during the same period.