GARUDA Indonesia, officially listed on the Indonesia Stock Exchange last Friday (TTG Asia e-Daily, January 13), is determined to continue its expansion plans, despite rising fuel prices threatening profitability.
On the same day as its listing, the airline signed an agreement with RBS Aviation Capital to finance four new Boeing 737-800NG aircraft — two of which have already been delivered. The other two are scheduled for arrival in 2013.
Garuda's acting finance director Elisa Lumbantoruan told the media the carrier was still expecting double-digit revenue growth for the year, despite jet fuel prices increasing to US$118.05 per barrel last week, the highest since September 2008.
Lumbantoruan said Garuda would be able to dampen the impact of the fuel hikes with its 11 new aircraft from Boeing and Airbus due this year, which are easier to maintain and have more economical fuel consumption.
Besides, Lumbantoruan said, Garuda managed earnings of 669 billion rupiah (US$75 million) in 2008 when fuel prices were at their peak.