Garuda delays aircraft deliveries amid losses

Amid ongoing financial losses, Garuda Indonesia is delaying delivery of aircraft that are scheduled to arrive this year in a move that will likely postpone the airline’s expansion.


Garuda delays aircraft deliveries amid losses


Amid ongoing financial losses, Garuda Indonesia is delaying delivery of aircraft that are scheduled to arrive this year in a move that will likely postpone the airline’s expansion. The state-owned enterprise recorded a loss of US$211 million from January to June, almost 20 times greater than a $10.92 million loss booked in the same period last year.

Garuda president director Emirsyah Satar said in a statement that Garuda’s efforts to strengthen the airline’s foundation ahead of the Association of South East Asian Nations (ASEAN) Open Sky policy next year had put adverse pressure on the firm’s profits.

“In 2014, Garuda ordered 27 new aircraft to support its network. In 2013 we brought in 24 new aircraft and in 2012 we had a total of 22 new aircraft,” Emirsyah said. “These aircraft were bought to expand our flight networks, both internationally and domestically, which was also aimed at increasing the country’s connectivity, as well as the economy in remote areas.”