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 Garuda Orders Bombardier CRJ1000 Jets

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PostSubject: Garuda Orders Bombardier CRJ1000 Jets   Thu Feb 16, 2012 8:04 pm

Feb 15, 2012

Garuda Indonesia will go ahead with a plan to boost its fleet size to 154 aircraft from 89 in three years, despite the threat of overcapacity arising from rival Lion Air's large order, its chief executive said.

The remarks came after the Indonesian flag carrier signed a USD$1.32 billion deal to purchase 6 Bombardier CRJ1000 aircraft and lease another 12 from Nordic Aviation Capital plus an option to purchase additional 18 aircraft.

"They have their business model, they have their targets, it is up to them. But we have our own business plan," chief executive Emirsyah Satar told reporters at the Singapore Airshow.

On Tuesday, Indonesian low-cost carrier Lion Air firmed up an order for 230 short-haul 737 jets from Boeing, making it the largest-ever commercial order received by the US plane maker. Lion Air's deal is worth about USD$22 billion based on the list price.

Garuda said it will receive five aircraft in the fourth quarter of this year and the order was part of Garuda's plan to expand its fleet size over the next three years.

The aircraft will be used to serve short and medium-range routes from its domestic hubs.

(Reuters)

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