Indonesian Political, Business & Finance News

Garuda to add planes to no-frills Citilink

| Source: JP

Garuda to add planes to no-frills Citilink

The Jakarta Post, Jakarta

National flag carrier Garuda Indonesia is seeking to add more
planes to its no-frills fleet, Citilink as the service has been
quite successful for the firm, a company official said on Friday.

Garuda President Indra Setiawan said the company would either
buy or lease the aircraft.

"The planes will be either Boeing or Airbus. So, Garuda
Citilink will use different types of aircraft from those used by
our competitors," Indra said as quote by Antara.

Indra, however, did not say when the plan would be carried
out.

Garuda's Commercial Director Bachrul Hakim said the airline
planned to add around 10 aircraft of Boeing 737-200s for Citilink
and more later.

"We are still looking for this type of aircraft. The problems
are more procedural rather than financial," Bachrul said, adding
that Garuda would not need external funding to finance the lease
or purchase.

"The plan is still on despite the fact that Garuda has to pay
back loans amounting US$60 million," he said.

Citilink Garuda was launched in 2001 as Garuda's domestic
budget service. With low operational costs and using aircraft
owned by Garuda, Citilink has become one of Garuda's most
profitable sectors.

Garuda uses Citilink to serve point-to-point routes and
targets economy class passengers who seek affordable air service.

At present, Citilink Garuda operates five Fokker 28 aircraft.
It serves 35 routes nationwide.

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