Garuda operates four more Boeing 737s

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)