Garuda seeking to postpone delivery of 20 aircraft

Jakarta (ANTARA News) - National flag carrier Garuda Indonesia is seeking to postpone the delivery of 10 aircraft it had ordered to increase the utility of its existing fleet.

Garuda is in the process of negotiating with the aircraft manufacturer to postpone the delivery of the aircraft, Garuda Indonesia President Director Pahala N. Mansury stated after opening the Second Phase of the Garuda Travel Fair here on Friday.

With the postponement, Garuda can increase the utility of its aircraft to 11 hours per day from the current 9 hours and 38 minutes per day, he noted.

"Our reason is that we want to focus on optimizing the usage of our aircraft. We hope firstly, the utility will increase performance, and secondly, we can extend the lease period," he remarked.

The plan to postpone the delivery of aircraft will start in the fourth quarter of 2017, he pointed out.

"God willing, the fourth quarter will offer a good momentum. We will not postpone all of them but only a few," he explained.

As the majority shareholder, the State Enterprises Ministry has approved Garudas plan, he stated.

"We are in the process of discussing (the plan), and the discussion has moved in a positive direction," he noted.

Meanwhile, Garuda Indonesia Finance Director Helmi Imam Satriyono pointed out that the postponement will have no significant impact on the companys finances.

"The financial impact will not be too large, as it will be felt at the end of the year. However, it will be experienced only next year," he said.

"This year, the delivery of two aircraft will be postponed. Until 2019, the number of aircraft whose delivery will be postponed will reach 10," he added.

Despite the postponement, he was optimistic that Garuda would post a profit of US$70 million this year.

Source: ANTARA News

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