Garuda operates four more Boeing 737s
JAKARTA (JP): National flag carrier PT Garuda Indonesia has added four more Boeing aircraft to its fleet since November, last year to meet the rising demand for both its domestic and regional flights, a senior executive of the airline said here on Tuesday.
Garuda commercial director Bachrul Hakim said the four aircraft were part of the seven Boeing 737s it leased from American financing companies GE Capital Aviation Services (GECAS) and the International Leasing Finance Company (ILFC).
He said that the four aircraft were delivered in November and December last year and were immediately put into operation to help with the annual exodus during the year-end holidays.
During the Christmas and Idul Fitri Holidays, Garuda provided an additional 29,012 seats to serve the annual exodus of people going and coming back from their holidays.
Bachrul said that the additional seats were made possible partly because of the arrival of the four planes.
"The arrival of the four aircraft have greatly helped us (during the exodus)," he said after a signing ceremony marking the cooperation of Garuda and international banking institution Citibank N.A.
Bachrul said two other aircraft were scheduled to arrive this month, and another one was still in the process of negotiation.
The Boeing 737s were leased to serve domestic and regional routes, he said, especially to strengthen the existing network by increasing the frequency of flights.
The lease of the seven Boeings was secured early in October at US$200,000 to $250,000 a month, depending on the age and the condition of the aircraft, he said, adding that the aircraft were leased for a three-year term.
Garuda currently operates 42 aircraft, including 19 Boeing 737s, seven Boeing 747s, six A-330s, five DC-10s, and five F-28s.
Bachrul said that Garuda was also studying the possibility of resuming its international flights to Fukuoka in Japan, Taiwan, and several destinations in China, after successfully resuming flights to Seoul, South Korea in October last year.
"We don't have any plans yet this year, but studies are ongoing about the possibility of reopening major international routes," he said.
Garuda closed 17 international routes, including to Seoul, Honolulu, Los Angeles, Taipei, Paris, Rome, Zurich, and Saigon late in 1997 due to the financial crisis.
"We are sticking to our policy that we will not operate at a loss. We will open new routes only when there's an opportunity to open routes that have sufficient market and will add to Garuda's revenue," Bachrul said.
Garuda signed an agreement with Citibank on Tuesday for a strategic alliance in its global cash management, and its frequent flyer program.
Garuda director of finance Emirsyah Satar said that the company would be able to save up to two percent on administration and conversion costs by using Citibank's multicurrency account.
"Garuda has representatives in 21 cities around the world. That needs good cash management so that no office has more money than others," he said, "When funds are pooled in one account the money could be distributed easily and efficiently no matter what the location."
Garuda had been using different accounts for each of its international offices, creating excesses in transfer and conversion administration funds, Emirsyah said. (tnt)