Garuda Indonesia has placed (11-Apr-2012) a firm order with Airbus for 11 more A330-300 aircraft. The order is the third to be placed by Garuda Indonesia for the A330 since Jul-2010, with the carrier now having a total of 21 aircraft on firm order for future delivery. All the aircraft will be powered by Rolls-Royce Trent 700 engines. The carrier will operate the aircraft with a premium two class layout on services from its hubs in Jakarta and Denpasar (Bali) to destinations in Asia, the Middle East and the Pacific, including South Korea, Japan and Australia, according to Garuda finance director Elisa Lumbantoruan. Garuda Indonesia, which currently operates 14 A330 aircraft, comprising eight A330-200s and six A330-300s, plans to fund the purchase using cash, proceeds from last year’s IPO and loans. [more - original PR]
Garuda Indonesia orders 11 more A330s
You may also be interested in the following articles...
Southeast Asia-US airline market Part 2: at least 7 airlines to offer US nonstop services by 2021
The deployment of new generation ultra-long-range widebody aircraft is prompting several airlines to plan new nonstop services between Southeast Asia and the continental US. New variants of the A350 have particularly emerged as a new, more efficient and popular option for Southeast Asia-US flights, with orders over the past year from three Southeast Asian flag carriers.
On 5-Sep-2016 Vietnam Airlines became the latest Southeast Asian airline to commit to new generation ultra-long-range aircraft capable of new nonstop routes – joining Philippine Airlines and Singapore Airlines. Garuda Indonesia and Thai Airways are likely to follow, resulting in four Southeast Asian airlines operating nonstop flights to the US by early next decade, compared with only one currently.
Delta Air Lines may also join United Airlines with nonstop Southeast Asia-US services. There are opportunities in the Southeast Asia-US market for nonstop routes, but competition with one-stop products will be intense. Profitability will be heavily challenged or non-existent. SIA started the trend due to strategic, not financial, imperatives. Under the charm of low fuel prices, Southeast Asian airlines risk falling into the spell of "me too" nonstop flights, just as they did with over-sized aircraft acquisitions.
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.