ANDREW DOYLE / SINGAPORE
Cash-strapped Indonesian carrier tweaks orderbook as restructuring efforts continue
Garuda Indonesia has concluded a deal with Boeing to take delivery of a mix of 18 Boeing 737-700s and -800s over three years starting in October 2002.
Meanwhile, the financially struggling Indonesian flag-carrier has launched its low-cost subsidiary Citilink with a fleet of Fokker F28s serving point-to-point routes in the centre of the country.
Boeing is understood to be assisting Garuda to arrange leasing contracts for the Next Generation 737 models, which will be used to replace McDonnell Douglas DC-10s and five leased 737 classics on short- and medium-haul routes. As a result, the eventual net impact of the deal on Boeing's firm order backlog remains unclear.
The range capability offered by the new 737s will enable Garuda to more efficiently serve the medium-haul routes it currently operates with widebodies.
The airline says it is maintaining its deferred 1996 order for six General Electric GE90-powered 777-200ERs which will eventually replace ageing Boeing 747-200s. However, the renewal of the longhaul fleet will not start until the ongoing restructuring of Garuda's $1 billion debt has been completed. Lufthansa Consulting is assisting Garuda with its efforts to restore profitability under a management contract.
Garuda's fleet currently includes seven 737-300s, 14 737-400s, five 737-500s, four 747-200s, three 747-400s, five McDonnell Douglas DC-10-30s and six Airbus A330s. Three A330-300s are on order in addition to the six 777s.
Citilink started operations on 16 July with two F28 Mk3000s retired from the mainline fleet. The low-cost carrier serves Balikpapan, Makassar, Tarakan and Yogyakarta from Surabaya in eastern Java - routes not served by the parent company.
A larger F28 Mk4000 is due to be added in September, followed by another Mk4000 by the end of the year, though Citilink has longer term plans to add a larger type to the fleet, possibly 737-300s. It is unclear how the move will affect Garuda's domestic subsidiary Merpati in the longer term.
Source: Flight International
