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#48408 - 27 Mar 07 12:58 Garuda is buying new boeing fleet
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Pujangga Besar

Registered: 24 Apr 08
Posts: 7508
Loc: Jakarta
I heard that Garuda is buying new Boeing planes.
Are these new planes going to be use for domestic, International routes? Anyone with more insight on this?

I am smelling Garuda's public relation working hard to ease the fear of public flying.
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#48413 - 27 Mar 07 13:12 Re: Garuda is buying new boeing fleet [Re: doremi]
jok Offline
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Registered: 21 Mar 06
Posts: 1099
Loc: Jakarta
i think it's to make a new image on Garuda buying new boeing planes
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#48422 - 27 Mar 07 13:23 JP/Garuda to buy new Boeing aircraft
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Pujangga Besar

Registered: 24 Apr 08
Posts: 7508
Loc: Jakarta
Garuda to buy new Boeing aircraft

Ary Hermawan, The Jakarta Post, Jakarta

Flag carrier Garuda Indonesia says it will purchase 25 new Boeing 737-800 aircraft as part of its long-term business plan to upgrade its aging fleet and return the airline to profitability.

Garuda Indonesia president director Emirsyah Satar said in Jakarta on Monday the first Boeing planes would be delivered in 2009, with the rest expected to arrive in stages through February 2012.

The new planes will replace some of Garuda's older planes, so the size of the airline's fleet will only increase to 55 aircraft from the current 48.

Emirsyah said the new aircraft would cost between US$35 million and $40 million each, far lower than the price of $75 million on Boeing's website.

"The price will depend on the specifications of the planes we order," Emirsyah said, adding that the company was still discussing financing schemes to fund the purchase.

Garuda may source the funding from bank loans, leasing or from the proceeds of a planned share divestment to strategic investors, he said.

The purchase of the new B737-800 airliners follows up an agreement signed by Garuda and Boeing in September 2005.

"We confirmed the purchase contract in December last year," Garuda finance director Alex Maneklaran said, adding the airline had already paid $23 million to Boeing.

One of Garuda's Boeing airliners overshot the runway and burst into flames at Adi Sucipto International Airport in Yogyakarta, Central Java, earlier this month. Twenty-one passengers were killed and dozens others injured in the accident, which was just the latest in a string of airline accidents in the country.

The Transportation Ministry recently announced that no airlines in the country, including Garuda, satisfied the criteria for the top safety compliance category.

The ministry also said it planned to issue a regulation prohibiting local airlines from buying aircraft older than 10 years in order to improve air safety.

Emirsyah said the ailing Garuda, with outstanding debts of about $748 million, was on the recovery track following business consolidation efforts over the past year years.

He said the company's balance sheet, which has been in the red for the last three years, was "very encouraging" for the past several months.

According to Emirsyah, Garuda's balance sheet has returned to black, with a net profit of about Rp 149 billion in the first two months of this year, compared to a net loss of Rp 37 billion in the same period last year.

The carrier, which suffered of about Rp 811 billion in 2004, Rp 688 billion in 2005 and Rp 191 billion in 2006, is expected to book a net profit of Rp 45 billion this year, Emirsyah said.

He said that of 26 domestic routes currently served by the airline, only two had suffered losses in the last two months. In the corresponding period last year, only three out of 23 domestic routes generated a profit.

"And most of the international routes served by Garuda have now made a profit. Last year, they all suffered losses," Emirsyah said.

Garuda's international destinations include Tokyo, Osaka, Riyadh, Sydney, Perth and Melbourne.

The airline's long-haul flights to Europe were halted following the 1997 economic crisis in Indonesia. The routes are now served under a code sharing agreement with other airlines.
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#48423 - 27 Mar 07 13:29 Re: JP/Garuda to buy new Boeing aircraft [Re: KuKuKaChu]
jok Offline
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Registered: 21 Mar 06
Posts: 1099
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loh kok postingnya pindah?? tadi kan nggak disini hahahaha............!! laugh
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#48425 - 27 Mar 07 14:46 Re: JP/Garuda to buy new Boeing aircraft [Re: jok]
chewwyUK Offline
Pujangga

Registered: 14 Sep 06
Posts: 2392
Loc: Jakarta
I can't see garuda competing in the international market these days .... They are still run by a bunch of "government people" who don't posses the commercial skills needed to become a trusted airline. They have lost too many routes and Indonesia's safety record will make people think twice before using them.

In their day they competed on price - unfortunately times change and they are no longer able to undercut their competition. IMHO they should stick to the local market
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#48427 - 27 Mar 07 14:48 Re: JP/Garuda to buy new Boeing aircraft [Re: chewwyUK]
jok Offline
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Registered: 21 Mar 06
Posts: 1099
Loc: Jakarta
that's an insult!
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#48429 - 27 Mar 07 14:57 Re: JP/Garuda to buy new Boeing aircraft [Re: jok]
chewwyUK Offline
Pujangga

Registered: 14 Sep 06
Posts: 2392
Loc: Jakarta
How is that an insult Ella?? The simple fact is the International airline industry has over the past few years cut staffing levels by thousands in order to compete. Garuda is still a government company and therefore will never cut staffing levels.

Garuda are not run as a commercial organisation so how can they be expected to compete in a highly competitive commercial market

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Edited by Piss Salon
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#48430 - 27 Mar 07 15:09 Re: JP/Garuda to buy new Boeing aircraft [Re: chewwyUK]
jok Offline
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Registered: 21 Mar 06
Posts: 1099
Loc: Jakarta
Garuda it's not a small company. why in your opinion they should stick to the local market? please read again the topic.
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#48432 - 27 Mar 07 15:15 Re: JP/Garuda to buy new Boeing aircraft [Re: jok]
chewwyUK Offline
Pujangga

Registered: 14 Sep 06
Posts: 2392
Loc: Jakarta
I never said they were small --- The point i am trying to make is they are not set up to be commercially viable. They have more chance of being profitable if they stick to the local market, Singapore, Malaysia routes. If they continue to try and compete for the international long and medium haul routes they will lose money. If they lose money then the tax indonesians pay to get education and medical treatment ends up going to pay the enormous salary of a director in Garuda
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