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Garuda defers all new aircraft deliveries in 2018

Garuda Indonesia confirms that it will not add any aircraft in 2018, and will instead work to maximise the utilisation of its existing fleet.

The airline tells FlightGlobal that it has pushed back the delivery of its 49 Boeing 737 Max 8s on order from 2017 to 2020. The jets, which will gradually replace its 737-800s, are now scheduled to be delivered from 2020 to 2024.

The Indonesian flag carrier will also take three Airbus A330neos in 2019.

Asked about the 14 ATR 72-600s on order, the airline would only say that discussions are still ongoing.

FlightGlobal reported last June that Garuda has approached Boeing, Airbus and ATR seeking to defer the majority of its aircraft deliveries in the coming years amid financial woes. The airline has also said that it is considering removing smaller aircraft such as the ATR and Bombardier CRJ from its fleet, and in its latest investor presentation lists finding a "solution" for the two aircraft types as an objective for 2018.

Flight Fleet Analyzer lists Garuda with 14 A330neos, 14 ATR 72s and 49 737 Max 8s on order. Its 141 aircraft fleet comprises 74 737s, 24 A330s, 18 CRJ1000s, 15 ATR 72s and 10 777s.

Low-cost unit Citilink meanwhile has 30 A320neos on order, and will take delivery of two this year.

Garuda has said that its five-aircraft fleet has been a drag on its finances, and that it can raise capacity by 12% simply by better utilising existing aircraft.

In a disclosure to the Indonesia Stock Exchange, the carrier also confirmed a news report that it will require between $100-200 million in capital expenditure this year.

It adds that it is also studying funding options for the year, with the issue of global bonds being considered.

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

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