Garuda Outlines Future Fleet Plan

[In The News]

DALLAS – Jakarta-based Garuda Indonesia (GA) has unveiled the future of its fleet as part of its multi-billion dollar debt restructuring program.

Currently, GA has just 30 operational aircraft. The airline plans to have 61 in service by the end of this year, bringing airframes back into the fleet using funds raised through its restructuring. This includes 13 Airbus A330ceos, three A330neos, eight Boeing 777-300ERs and 37 737-800s.

Airbus delivered GA’s first A330-900neo in November 2019. Photo: Airbus.

Future Growth

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It will then grow the fleet by an average of nine airframes per year, planning a 96 aircraft fleet by the end of 2026. This will consist of 70 737-800s and 26 wide-bodied jets. Pre-pandemic, the airline had 142 aircraft in its fleet.

Indeed, GA will reactivate a number of its 737-800s stored during the pandemic. However, the new fleet plan does not include the 737 MAX, of which GA had 49 on order. Its sole 737-8 (PK-GDA) was recently returned to the Bocomm Leasing lessor.

Garuda’s sole 737-8 has since been returned to the lessor. Photo: Boeing.

Renegotiations

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In March, GA announced that it hoped to rejig several orders it had in place with Airbus and Boeing. It was also renegotiating the conditions on a number of aircraft leases, with the hope of ending some leases early.

Garuda’s debt restructuring was approved by its creditors on June 17, 2022. Its narrow-body leases were reduced by 35%, while lease rates on the wide-body fleet were cut by 65%. These new lease rates will come into effect next year.

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Featured Image: The future fleet plan will see the Boeing 737-300ER fleet remain at eight. Photo: Alberto Cucini/Airways.

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