Garuda Indonesia opened this year’s Paris Air Show by signing contracts worth up to around $20 billion with both Boeing and Airbus.
In a purchase agreement with Boeing worth up to $10.9 billion, the Asian carrier committed to 30 787-9s and 30 737 Max 8s. Projected delivery for the 787s is between 2020 and 2024, and for the 737s between 2022 and 2025.
Later on Monday morning, Garuda signed a letter of intent (LOI) with Airbus for 30 A350XWB widebodies. The carrier has yet to specify which of the A350 variants it will take. At a $304.8 million list price for the -900 version, the deal would be worth $9.1 billion.
Appearing with Boeing Commercial Airplanes CEO Ray Conner and BCA senior vice president of sales for Asia Pacific and India, Dinesh Keskar, Garuda Indonesia president and CEO Arif Wibowo talked of using the Dreamliners to open new service to Europe and even possibly to the U.S., where it currently cannot fly due to its Federal Aviation Administration Category 2 status.
Last serving the U.S. some 17 years ago, when it flew between Jakarta and Los Angeles, Garuda plans to work with Boeing to regain its FAA Category 1 status in the near future, said Wibowo. Conner added that helping to secure its rights to fly into the U.S. as a “top priority” for Boeing.
Along with the new Boeing LOI, the Indonesian flag carrier also reconfirmed its intent to buy another fifty 737 Max 8s, a deal originally announced in October. It plans to use the Max narrowbodies to replace aging 737NGs now serving its domestic market.
According to Wibowo, Garuda had selected the A350XWB on the basis of its reduced fuel consumption, range capability and extra wide cabin. “The A350XWB will be one of the options for us to reposition ourselves as a leading premium carrier in the competitive long haul market out of Asia,” he said.
The airline now flies more than 90 Boeing airplanes, including 737NGs, 777-300ERs and 747-400s. Its fleet also includes A330-200s.
