Garuda Eyes Financing for 50-Jet Boeing Deal Amid US Talks

Garuda Indonesia has confirmed it is in advanced discussions with Boeing and is exploring financing options for a potential order of 50 aircraft. In a stock exchange filing, the flag carrier said it is working with “several potential financiers” while continuing “ongoing and intensive discussions” with the US aircraft manufacturer.

Although the airline has not officially confirmed the number or type of aircraft, Indonesian Coordinating Economic Affairs Minister Airlangga Hartarto previously stated the deal is linked to broader trade negotiations between Indonesia and the United States. Reports from CNBC Indonesia suggest the agreement may include Boeing 777 widebody aircraft, but specifics remain under negotiation.

Garuda noted that the potential order would align with its post-restructuring financial recovery strategy. The funding plan includes a portion of the USD405 million capital injection from its new majority shareholder, Indonesia’s sovereign wealth fund, Danantara.

“The company and Boeing are exploring aircraft specifications that align with Garuda’s targeted market segment,” the airline stated, emphasizing that the deal is part of its long-term fleet renewal strategy.

Earlier reports indicated a possible order of up to 79 aircraft, but this has now been revised to 50 jets. The prospective Boeing order is also seen as a step toward improving Indonesia’s trade balance with the United States. The aircraft purchase is expected to support a trade agreement under which the US would apply a reduced 19% tariff on Indonesian goods, instead of the originally proposed 32%.

Garuda’s fleet modernization is key to restoring competitiveness in international and domestic markets.

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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com