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Wings Air signs contract for more ATR 72s

ATR 72-600: (Courtesy of ATR)Indonesian companies kept striking deals with partners on Thursday during the third day of the Singapore Airshow at the Changi Exhibition Center

Margareth S. Aritonang and Novan Iman Santosa (The Jakarta Post)
Singapore/Jakarta
Fri, February 17, 2012

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Wings Air signs contract for more ATR 72s

ATR 72-600: (Courtesy of ATR)

Indonesian companies kept striking deals with partners on Thursday during the third day of the Singapore Airshow at the Changi Exhibition Center.

Regional airline Wings Air, part of the Lion Air group, signed a contract on Thursday to procure 27 ATR 72 series twin turboprop aircraft to expand service to smaller towns across the archipelago and to offer more short-range connecting flights.

Meanwhile, state aircraft maker PT Dirgantara Indonesia (DI) signed agreements with pioneer airline Nusantara Buana Air (NBA) to purchase 20 N219 airplanes, and maintenance, repair and overhaul (MRO) firm GMF AeroAsia signed more deals with new and existing customers.

Wings Air’s US$610 million contract for the ATR 72-600s was signed by Lion Air CEO Rusdi Kirana and ATR chief executive officer Filippo Bagnato.

“Our fleet of ATR 72s is playing a major role in the development and democratization of the aviation industry in Indonesia, bringing new travel possibilities, at low rates, to an increasing part of the population,” Rusdi said.

“With the ATRs, Wings Air is also contributing to the development of business opportunities across the country and to develop tourism in regions such as Java, Bali and Nusa Tenggara,” he added.

Rusdi said that two international commercial banks, French-based Bank BNP Paribas and CACIB, would finance the deal.

The contract will make Wings Air the largest operator of ATRs in the world, with a fleet of 60 aircraft consisting of 20 ATR 72-500s and 40 ATR 72-600s. Both types are configured with 72 seats.

The airline plans to receive its last ATR 72 by the end of 2015.

Wings Air introduced its first ATR in January 2010 and currently operates a fleet of 16 ATR 72-500s for its domestic network.

More than 40 percent of the total sales of ATRs since 2005 have come from the Asia Pacific. Around 250 ATR aircraft are currently operated by Asia-Pacific carriers, with additional 80 aircraft on order.

Separately, Garuda Indonesia’s president director Emirsyah Satar said on Thursday that the airline would work with Canada-based Bombardier Inc to build a maintenance and repair center in Indonesia.

Emirsyah made his statement followed the closing of a deal to buy Bombardier aircraft.

The center would be important for supporting Garuda’s operations and to expand its business by maintaining and repairing aircraft from the Asia-Pacific region, he said.

Emirsyah declined to comment on the estimate cost and the types of aircraft that the center would serve.

“We’ve agreed to the plan and now our team is working on the details. We expect to get a detailed plan within three months,” he told The Jakarta Post via text message.

PT DI president director Budi Santoso signed a Letter of Intent (LoI) with NBA president director Laurens Prawira Nitimihardja on Wednesday at the show.

The LoI was followed by a Memorandum of Understanding (MoU), that was signed by both firms and RTCom Investment Com Ltd to finance the program, the airframer said in a statement sent to The Jakarta Post.

Industry Minister MS Hidayat, State-Owned Enterprises Minister Dahlan Iskan and Trade Minister Gita Wirjawan also attended the signing.

NBA plans to purchase 20 N219s, with an option to buy another 10. Both parties agreed to further negotiate the technical and business aspects of the deal.

GMF signed contracts to maintain airplanes operated by Sriwijaya Air, HAK LAG Inc Air and Vietjet Air on Thursday.

Meanwhile, contracts with Pacific Royale Airways and CIT Leasing Corporation were signed on Wednesday.

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