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]
Garuda Indonesia and ICBC Financial Leasing sign agreement for aircraft financing
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Global commercial aircraft deliveries fell in 2016 as Boeing again outsold Airbus; 2017 to be a peak
The global commercial aircraft fleet grew by 4% in 2016 and the year ended with an order backlog of more than nine years of production. Among the regions, North America still has the biggest and oldest fleet, but the lowest ratio of orders to aircraft in service. By contrast, Middle East has the fewest in service, but the highest ratio of orders to current fleet numbers.
This report gives an overview of the number of commercial aircraft deliveries in 2016 and the outlook into 2017 and beyond. It also looks at numbers in service and on order by region. It is based on preliminary numbers from the CAPA Fleet Database and guidance on 2016 deliveries from Airbus and Boeing, who have yet to announce final numbers.
The data indicate that total worldwide deliveries fell in 2016, the first such decline for six years, as a result of delays to new aircraft programmes. Boeing delivered more aircraft than Airbus for the fifth straight year, but its deliveries fell short of its 2015 level, while Airbus increased its numbers year-on-year. Total deliveries will likely rise again in 2017, but this may prove to be a peak year.
Garuda Indonesia international outlook Part 1: further expansion despite weak 1H2016 results
Garuda Indonesia is planning further international expansion in 4Q2016 and 2017, despite a recent lacklustre performance in the international market. Garuda is adding capacity to China in 4Q2016 and aiming to launch services to the US in 2017.
Garuda’s international load factor was only 70% through the first eight months of 2016 as the airline struggled to fill additional seats generated by an 18% increase in ASKs. International yields have also declined as Garuda swung back into the red in 1H2016.
The long haul network has particularly struggled, driving the drop in profitability. However Garuda is keen to continue strategic expansion.