National flag carrier Garuda Indonesia has secured a US$120 million loan from a syndicate of domestic and international lenders to aid its business expansion plans next year.

President director Emirsyah Satar signed the syndicated commitment in Jakarta on Wednesday with representatives from the banks concerned: Citi Indonesia, which is also acting as the coordinator for the loans; Bank ICBC Indonesia, Bank Panin, First Gulf Bank PJSC, Korea Development Bank, Standard Chartered Bank and the Bank of China.

Emirsyah said the loan would be used to help Garuda finance the purchase of 24 new aircraft in 2013 as well as improve the company’s other facilities.

“As the world’s largest archipelagic country with a 250-million population, Indonesia needs more aircraft to connect one place to another. As an airline, Garuda is committed to doing this job, and we have stated our commitment through the Quantum Leap program,” he said on the sidelines of the signing ceremony.

He said the aircraft they would receive next year, which will serve both domestic and international routes, comprise four Boeing 777-300 Extended Range aircraft; 10 B737-800 Next Generation; two Airbus 330-320s; one A330-300s, and seven Bombardier CRJ1000 Next Generation.

The B777s are set to replace Garuda’s aging B747 fleet, which are currently used for long-haul routes including Jakarta–Amsterdam and Jakarta–Jeddah.

Meanwhile, other aircraft will be used to expand the airline’s international services in 2013, linking Jakarta with Auckland, New Zealand; Brisbane, Australia; and London, UK.

“We are also very happy with the syndicated facility as it shows the confidence the banks have in Garuda Indonesia. We hope this positive collaboration continues in the future,” he said.

Tigor M. Siahaan, Citi Indonesia’s country officer, said he was pleased with Garuda’s excellent performance during the past five years.

“We are very proud of this airline. We are completely committed to Garuda because this airline is the representative of Indonesian history,” Tigor said.

He added that Citi had gladly acted as coordinator for Garuda Indonesia’s syndicated loans for the past two years due to the strong demand in the country’s aviation industry.

Garuda currently operates 96 aircraft, each at an average age of 6.23 years. The airline flies to more than 50 destinations domestically and internationally.

Under the airline’s Quantum Leap program, it plans to increase its fleet to 194 aircraft with an average age of five years by the end of 2015, and carrying 45.4 million passengers.

In mid-October, the airline officially put into operation the Canadian-made Bombardier airplane from its regional hub in Makassar, South Sulawesi to help strengthen service on its domestic routes. Four out of the 18 jets that Garuda is expected to receive next year will serve routes connecting Makassar and Ternate, North Maluku; Kendari, Southeast Sulawesi; Mataram, West Nusa Tenggara; and Surabaya, East Java.

The fifth Bombardier, which the airline expects to receive in December, will enter service at Garuda’s hub in Surabaya, connecting the city with one of the world’s most popular tourist destinations: Denpasar in Bali.

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