Indonesian national carrier Garuda has obtained shareholder approval to purchase up to 97 new aircraft using funds from the airline’s initial public offering (IPO) issued last year. Garuda had initially planned to use the IPO funds to buy 36 new planes.
Under the new plan, approved Friday, Garuda will purchase or take options on 20 Boeing 737-800NGs, up from 10 under the previous plan; 10 Boeing 777-300ERs; 21 Airbus A330-200s, up from six; 25 narrow body planes, up from five; and 18 sub-100 seat aircraft, up from five.
The acquisitions will bring Garuda’s fleet to as many as 194 planes by 2015.
Garuda earned about Rp 3 trillion (US$333m) during its IPO last year. The carrier plans to use 80 per cent of that for fleet expansion and the remainder on capital expenditure.