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Garuda Places US$2.18 Billion Order with Airbus

35 Airbus A320s to Modernize Low-Cost Garuda Subsidiary Citilink


Bali News: Indonesia, Garuda Indonesia, Citilink, Airbus 320, spin-off, Elisa Lumbantoruan
Click Image to Enlarge

(8/15/2011)

Garuda Indonesia and Airbus Industries have reached an agreement to purchase 25 Airbus A320 and 10 Airbus Airbus 320-Neo with a total purchase price of US$2.18 billion.

Bisnis.com quoted the Financial Director of Garuda, Elisa Lumbantoruan, as confirming the delivery of the new aircraft will commence in 2014 at a rate of 5 aircraft per year.

The sales contract with Airbus Industries is the realization of an earlier memorandum of understanding between the two companies in which Garuda pledged to purchase 25 Airbus A320s with an option to purchase an additional 25 planes.

The aircraft are part of a strategic business plan to renew the fleet of the airline’s low-cost subsidiary Citilink. Those plans also call for a spin-off of Citilink, separating it from Garuda, before the end of Q1 2012.


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