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Garuda Indonesia and ICBC Financial Leasing sign agreement for aircraft financing

3-Oct-2013 6:47 PM

Garuda Indonesia and Industrial and Commercial Bank of China (ICBC) Limited signed (03-Oct-2013) an agreement for aircraft financing. The financing agreement features a sale and lease back plan for Garuda Indonesia's five Boeing 777-300ER and an operating lease plan for ICBC Financial Leasing's six A320-200 for Citilink, valued at USD1.7 billion. Garuda Indonesia will receive the five 777-300ER in May-2014 through Sep-2015, while the six A320-200 will join the Citilink fleet in Jun-2014 through Dec-2014. The 777-300ER will serve the following routes: Denpasar-Japan, Denpasar-Korea, Denpasar-China, and Denpasar-Sydney. In addition, in 2014 the aircraft will operate on the Jakarta-London sector and on Jakarta-Amsterdam sector in 2015. Meanwhile, Citilink operates A320-200 on domestic services to Surabaya, Medan, Denpasar, and other regions in Indonesia as part of efforts to enhance connectivity with the Masterplan for Acceleration and Expansion of Indonesia's Economic Development (MP3EI) programme. The rest of its fleet will also be used to serve regional routes such as Singapore, Kuala Lumpur and Perth in order to atract more tourists to Indonesia. Garuda Indonesia president and CEO Emirsyah Satar commented: "The operation of the Boeing 777-300 ER aircraft is in line with our "Quantum Leap 2011-2015" programme, in particular fleet expansion to increase international network as Garuda Indonesia establishes itself as a Global Player".  [more - original PR]