This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.
Investor Daily - Garuda Indonesia tambah delapan pesawat
27 May 2024
Jakarta, ID – PT Garuda Indonesia Tbk (GIAA) is planning to add refurbished aircraft to its fleet this year through a monthly lease scheme. The annual operational expenditure for leasing these eight aircraft is predicted to reach Rp767 billion. The addition of these aircraft will also increase Garuda’s fleet from 72 to 80 units.
“The monthly lease cost for each aircraft is around US$200-500 thousand,” Garuda Indonesia Finance Director Preasetio said during a press conference held after the annual general shareholders’ meeting in Tangerang recently.
With an exchange rate of Rp16,000 per US dollar, the state-owned airline will spend up to Rp8 billion per aircraft each month on operational expenses, totalling Rp767 billion annually for eight aircraft.
These eight refurbished aircraft consist of four narrow-body Boeing 737-800NGs and four wide-body aircraft that are two Boeing 777-300ERs and two Airbus 330-300s.
Garuda Indonesia President Director Irfan Setiaputa has not yet disclosed the investor partnering with the company to provide these eight aircraft through the monthly lease scheme. “Not yet, be patient,” Irfan told Investor Daily.
According to him, the company’s plan to lease eight refurbished aircraft is on progress as they are currently looking for available aircraft. Moreover, there are several details that GIAA must address internally.
“We hope the eight aircraft can arrive and operate before October 2024. However, I want to emphasise that these are not new aircraft, but refurbished ones. They are airworthy, though,” Irfan explained.
Although these are refurbished aircraft, Irfan assures that Garuda has established stringent conditions for the leasing company. These aircraft are leased and not owned by Garuda.
“Therefore, the capital expenditure is not particularly significant. We typically pay for our aircraft on a monthly basis. We expect these aircraft to expand Garuda’s fleet and increase the frequency of our planned routes,” Irfan stated.
Global investors
Regarding global investors who are planning to invest in Garuda, Irfan revealed that the management has yet to receive new updates on the matter. However, he does not deny that the State-owned Enterprises Ministry as a shareholder has established communication with potential investors.
“So, if you ask us as the management, we do not know. We feel that is not our domain. However, we will provide updates if there are any shareholder-related matters that we can share,” Irfan added.
