Garuda Indonesia confirms order for 14 Airbus 330neo

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A330-900neo_Garuda_IndonesiaIndonesia’s flag carrier Garuda Indonesia has confirmed an order with Airbus to buy 14 units of the A330-900neo, the new re-engined version of the A330 widebody airliner, to support the company’s growth and business expansion.

To be delivered from 2019 onwards, the A330neo will be used by Garuda Indonesia to develop its medium- and long-haul networks.

The order replaces and extends an existing order for seven A330-300 aircraft.

Said Arif Wibowo, CEO of Garuda Indonesia, “The A330neo represents a more efficient future for Garuda Indonesia. This order restructuring is believed to support our continued commitment to deliver the most modern, comfortable and excellent air travel service to all customers as well as to strengthen the sustained positive growth and business expansion of the company. Furthermore, we are confident that this latest technology aircraft will support us to compete better in the industry.”

The deal, signed at a ceremony in London in the presence of Indonesian President Joko Widodo and British Prime Minister David Cameron, is the latest milestone in a long-standing partnership dating back more than 30 years, when the airline took delivery of its first Airbus A300.

The A330-800neo and the A330-900neo are two new members of the Airbus Widebody Family. The A330neo incorporates the latest generation Rolls-Royce Trent 7000 engines, aerodynamic enhancements, and new cabin features. It reduces fuel consumption by 14% per seat, making it the most cost efficient, long-range widebody aircraft on the market, said Airbus in a statement.

Cargo income goals

Meanwhile, Garuda Indonesia has tasked its cargo unit to contribute 20% to the group’s income this year.

Garuda Indonesia’s commercial director Toni Soetirto said that to achieve the target, they have appointed a new director, Sigit Muhartono, to take charge of cargo transport, said a report by Antara News.

The carrier hopes to raise its income from cargo transport to US$1 billion from around $275 million a year at present.

To accomplish this,  the airline plans to enter into joint operations or joint ventures with other entities such as multinationals and the state-owned post office company PT Pos Indonesia.

Soetirto said the carrier’s local markets include all destinations in the country. Overseas cargo markets include the Middle East, China, Japan, and South Korea.