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Jakarta Post

Garuda delays plan to purchase planes

News Desk (The Jakarta Post)
Jakarta
Tue, September 19, 2017

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Garuda delays plan to purchase planes A Garuda Indonesia's Boeing B737-800 travels through the taxiway at the Soekarno-Hatta International Airport in Jakarta, on Oct. 13, 2016 (The Jakarta Post/Bagus BT. Saragih)

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lag carrier Garuda Indonesia president director Pahala N. Mansury has said his company has informed plane manufacturers of a delay in its plan to purchase planes this year and next year.

The delay is necessary to cut down on the operational costs that have caused the company to suffer losses this year.

“When speaking to plane manufacturers, we have to be tough to convince them that we really need to delay the delivery of the planes,” said Pahala as reported by tribunnews.com on Tuesday.

Initially, the state-owned airline planned to receive a single plane late this year and 10 more planes in 2018.  “We have renegotiated with the producers to delay the delivery of the aircraft,” he said.

After delaying the purchase, Pahala added that his company would try to extend its leasing contracts on several planes.

“We are focusing on utility, delaying purchases and extending the leasing contracts,” he added. (bbn)

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