Massive Strides

Back in the late 1990s state-owned Garuda Indonesia was one of the region’s basket cases. Deep in debt and near bankrupt, the carrier’s operations were mired in corruption, cronyism and nepotism, not to mention its dismal safety reputation. It has taken some time but today the Jakarta-based flag carrier is pulling in awards, making money and laying big plans for the future.

It was probably the biggest surprise at the recent Paris Airshow. At an event where aircraft manufacturers’ sales have long been dominated by unprecedented orders from the voracious Gulf operators, one of the biggest deals came from Stateowned Garuda Indonesia, a US$20 billion spend on 90 new jets. The commitment is for 60 planes from Boeing – 30 787‑9 Dreamliners and as many as 30 737 MAX 8s – worth US$10. 9 billion, as well as 30 Airbus A350 XWB aircraft valued at US$9. 1 billion. While it will be some time before these aircraft will begin joining Garuda’s fleet – at this stage the orders are in the form of letters of intent and have yet to be finalised – the deal marks a landmark moment for an airline that has spent years rebuilding a shattered image with the flying public. In essence, it signals a new phase in the carrier’s recovery and its intention to become a major player in Asia’s skies and beyond.

The orders, explained Garuda’s president and chief executive Arif Wibowo, are part of the airline’s revitalisation program “in order to provide our passengers with the best possible experience with the youngest fleet in the sky and to support the airline’s future plan to further expand its network globally”.