GARUDA INDONESIA has finalised a deal with McDonnell Douglas (MDC) to lease three new MD-11 tri-jets, to replace three similar early-build aircraft owned by General Electric Capital Services (GECAS).
MDC is expected to deliver the three General Electric CF6-80C2-powered aircraft at the end of 1996 on a long-term lease. Garuda's first three MD-11s will then be returned to GECAS.
The GECAS aircraft were originally leased to the airline by GPA through its local joint venture GPA Aero Citra, before being taken over by the US leasing company. Garuda has complained about the performance of the first batch of MD-11s.
Garuda has now opted to exercise a five-year break clause in the 12-year lease. Another three MD-11s, leased in for 12 years from MDC, remain in service.
The airline is continuing to renegotiate its outstanding orders with Boeing for six 747-400s and nine 737-400s. Talks now centre on increasing the number of leased 737s and possibly deferring delivery of its 747s until 2000 and beyond.
Meanwhile, state-owned subsidiary carrier Merpati Nusantara Airlines has concluded a ten-year lease agreement for 16 locally built IPTN CN-235-220s. The aircraft will be leased from Deutsche Morgan Grenfell for $90,000 a month.
The deal had earlier run into trouble when former Merpati president Ridwan Fatarudin refused to take the turboprops, saying that the $110,000-a-month lease rate demanded was too high. Ridwan subsequently lost his job.
Source: Flight International
