Airline News
Garuda back in the black, announces CFM partnership
August 3rd 2015
Garuda Indonesia has returned to profitability in first-half 2015, posting a net profit of $27.7 million for the six months ended June 30, reversing a significant $203 million loss in the year-ago period. Read More »
The airline's first-half performance was lifted by cost reductions, as well as fuel and currency hedging, Garuda chief executive, Arif Wibowo, said in Jakarta following the announcement, adding Garuda had successfully performed a "network restructuring" by focusing on more profitable routes. It had also hedged 45% of its fuel needs and is aiming to raise that level to at least 50% this year, compared to about 10% last year, chief Wibowo continued.
Meanwhile, Garuda has selected CFM International’s LEAP-1B engines to power the 50 B737 MAX 8 aircraft it signed for at the Paris Air Show in June. Commenting on the $600 million deal, Max York, regional general manager of sales for CFM said the manufacturer was “pleased that Garuda Indonesia has continued to place its trust in CFM," adding it had “built a great relationship with this airline over the years and really look forward to introducing the LEAP engine into their fleet." At press time, CFM had received orders and commitments for more than 9,600 LEAP engines.
