JAKARTA (TheInsiderStories) - The national flight carrier, PT Garuda Indonesia Tbk (IDX: GIAA), order of four Airbus 330-800 (A330neo) varian still open, according to the American-based manufacturer’ latest report. The airlines is expecting will operate 16 A330neos, consist of four-800s and 12 A330-900 after the contract in place.
Of the total, three A330-900s has been delivered to the state firm. As of now, there is no confirmed delivery timeline for the other fleets. The carrier signaled to take delivery of two in late 2021 and 2022. The company have an ongoing program of fleet expansion, acquiring new and more aircrafts in order to capitalize on growth opportunities in the different market segments that it served.
Currently, Garuda maintains 142 aircrafts, including 27 A330s, Airbus A330-200, Boeing 777-300ER, and 737-800NG. Last year, the airlines has talked with Airbus to delay deliveries of four aircraft orders, as the virus outbreak restricts travel and dampens demand.
According to the CEO, Irfan Setiaputra, Garuda has nine A330neos order with Airbus that have yet to be delivered and its low-cost arm PT Citilink Indoniesa, has 25 A320neo orders. The issuer faces financial difficulties after the virus outbreak, resulting in a 90 percent drop in passengers volume.
On February 2021, Garuda announced to aborts the delivery of Bombardier CRJ-1000 leasing contract and would return 18 fleets to the lessors, which are 12 will be returned to the Denmark-based company, Nordic Aviation Capital, and six units to Export Development Canada.
“This decision related to the the Indonesian Corruption Eradication Commission and the UK (United Kingdom) Serious Fraud Office’ investigation into indications of bribery from the manufacturer to individual Garuda leaders during in 2011,” said state own enterprises minister, Erick Thohir on Feb. 10.
Recently, the British financial market criminal investigation agency, conducted an investigation regarding the alleged corruption of both parties regarding the order of the plane belonging to the Canadian manufacturer. The authority has intervened the Bombardier Inc.‘ Class B shares listed on the London Stock Exchange.
Setiaputra explained the deal with the lessors signed on February 2012 to lease six CRJ-1000 fleets with an option to take delivery of an additional 12 jets with total amount US$1.32 billion. The aviation company then took the first delivery of the Canadian-made regional jet in October 2012. Bombardier delivered its last CRJ-1000 in December 2015.
UK’ Serious Fraud Office confirmed its investigating plane producer, Bombardier, over suspected bribery and corruption in relation to contracts or orders from Garuda. The body wrote, “In accordance with best practices when such allegations come to our attention, we have launched an internal review conducted by external counsel and we are co-operating with the investigation opened by the UK Serious Fraud Office, which has contacted Bombardier further to the Indonesian judgements.”
Orders from the state-owned flight carrier for A330s and A320s orders had been among agreements probed during a long investigation into allegations of failure to prevent bribery focused on Airbus.
As a result of this lease cancellation, Garuda is required to pay an early termination fee and fulfill the technical conditions for aircraft redelivery. However, this offer was rejected by Nordic and the company unilaterally terminated the contract for the 12 aircraft. The carrier plans to open direct flights to Bali from United States, France, and India to boost the tourism sector
Garuda is also restructuring its aircraft leasing by seeking a lower leasing price or extending the period, said Setiaputra. He adds, 12 of its lessors have agreed to a restructuring the debt and is still in negotiations with 13 other lessors.
Written by Editorial Staff, Email: theinsiderstories@gmail.com
