Garuda to lease 12 new aircraft<\/p>\n
Rendi A. Witular, Jakarta<\/p>\n
National flag carrier Garuda Indonesia will lease 12
\nadditional aircraft between now and 2005 to support the expansion
\nof its budget service Citilink and to counter the tight
\ncompetition in the local budget airline market.<\/p>\n
Garuda spokesman Pudjobroto said the 12 aircraft would be
\nshort-haul Boeing 737s and would be used to expand Citilink
\nservices in western and central parts of Indonesia.<\/p>\n
"Currently, Citilink services are focused on cities in the
\neastern part of the country. But now we are expanding toward the
\nwest because of the huge market potential there," said Pudjobroto
\nduring a seminar on Friday.<\/p>\n
Pudjobroto did not say from where Garuda would lease the
\nplanes or the cost.<\/p>\n
He only said that of the planned 12 aircraft, Garuda was
\nexpecting seven of them to arrive this year, while the remaining
\nfive would arrive next year. The planes were expected to replace
\nfive Fokker aircraft currently operated by Citilink.<\/p>\n
Citilink Garuda was launched in 2001 as Garuda's domestic
\nbudget service. The airline currently operates five Fokker
\naircraft and three Boeing 737s to 11 destinations.<\/p>\n
Garuda has been facing tough challenges at home from a posse
\nof relatively new budget airlines, particularly Lion Air. The
\nincreasing competition has benefited customers as flying to
\nvarious parts of the archipelago has become much more affordable.<\/p>\n
Pudjobroto said that the size of the domestic budget market
\nwas projected to grow by 35 percent this year, higher than the
\nforecast growth for the middle and high ends of the market.<\/p>\n
The total number of airline passengers in the country this
\nyear is projected to grow to 20 million compared to 16 million
\nlast year.<\/p>\n
Garuda had previously said that it planned to focus the
\nCitilink service on the middle to lower end of the market, while
\nGaruda itself would concentrate on serving the middle to upper
\nend.<\/p>\n
Garuda's current fleet comprises 54 aircraft serving 21
\ndomestic and 22 international destinations. International
\noperations account for 55 percent of Garuda revenues, while
\ndomestic operations account for 45 percent.<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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