Garuda Indonesia has delayed plans to revamp its regional fleet with new Boeing 737s due to finance problems. It is now evaluating a deal to acquire new aircraft on operating lease.
The airline held a long-standing order with Boeing for 18 737-800s, which had been suspended until earlier this year. Then the Indonesian flag carrier revived the deal, negotiating a delivery schedule to begin in October next year. The order has now again been deferred, this time by a year, to late 2003.
Garuda has a fleet of 26 Boeing 737-300/400/500s and planned to use the new -800s to replace ageing McDonnell Douglas DC-10 widebodies used on some of its domestic and regional flights. The addition of interim capacity is being considered through an operating lease deal, and according to industry sources, the airline has received an attractive offer of Boeing 737-700s and -800s from GE Capital Aviation Services.
Airbus is meanwhile attempting to persuade the Indonesian flag carrier to upgrade its long-haul fleet with A340s rather than the six General Electric GE90-powered 777-200ERs it ordered in 1996, but is not due to receive until 2004.
Garuda operates six A330-300s, which share a high level of commonality with the long-rangewidebody. The airline has three more A330s on order but delivery of these aircraft has been delayed indefinitely.
Source: Flight International
