Home' Asian Aviation : AAV March 2010 Contents 16 Asia nAviation | MARCH 2010
News In Brief
INDONESIAN scheduled and charter airline Susi
Air has ordered two additional Piaggio Aero
P180 Avanti IIs and placed an option on another.
Pangandaran, West Java-based Susi Air has been
operating a single P180 since July 2009. The new
aircraft are due to join the fleet in the first quarter
of this year. Susi Air operates from four main
bases across the Indonesian archipelago.
SICHUAN AIRLINES has taken delivery of its first
widebody aircraft – an Airbus A330-200 . The
aircraft is the first of three of the type to be leased
by the Chinese carrier from AerCap Aviation
Solutions. The widebody A330-200 twinjets will
be used on domestic trunk routes from Chengdu
to major cities, including Beijing and Shenzhen,
as well as on regional routes within Asia and
international long-haul services to Europe.
Singapore Show Report
Garuda on track for mid-year IPO
Garuda Indonesia will launch an initial
public offering (IPO) in the middle of this
year with a view to raising approximately
The IPO is part of the carrier’s Quantum Leap
turnaround programme, which includes re vitalising
its fleet, expanding domestic and international
ser vices, spinning off the Citilink low-cost
operation and transforming the airline’s image.
Garuda has been disciplined in its efforts to turn
its business around, President and Chief Executive
Officer Emirsyah Satar said in a briefing at the
Singapore Airshow. The airline’s debt restructuring
is almost complete, while results have improved over
the last couple of years – leading to a US$67 billion
profit in 2008 – although the transformation has
been “challenged” by the global financial crisis, he
The IPO will see 40 percent of the airline listed,
with the funds raised being used to finance long-
term growth plans.
The airline has an aggressive fleet modernization
plan, with 23 Boeing 737-800s and one Airbus
A330-200 due for delivery this year. Over the next
five years, Garuda will almost double its current
fleet of 67 aircraft to 116, including 737-800s,
A330-300/200s and 10 Boeing 777-300ERs.
The 777s will be used on ultra-long-range flights
from 2011, as Garuda expands its international
network with eventual plans to operate to Los
Angeles. The Indonesian flag carrier has converted
orders it had for the Boeing 787 to the 777, as it
could not wait with its fleet renewal programme for
the delayed 787, Satar says.
Garuda displayed one of its 737-800s at the
Singapore show, featuring the carrier’s new livery
and interior décor. To date, five 737-800s have been
delivered, with 20 more on order.
The new fleet will allow Garuda to add 10
domestic routes this year and increase frequencies
on regional routes. By 2014, the airline aims to
increase the number of domestic departures by
more than 150 percent to 2,072 per week, while
more than tripling international departures to
1,222 a week.
In June, the airline will launch its international
expansion, with a daily non-stop ser vice from
Jakarta to Dubai and on to Amsterdam – the first of
a numb er of planned European destinations which
include Frankfurt, Paris, L ondon and Rome.
The international expansion follows a concerted
effort to address the carrier’s safety standards and
image. In May 2008, the airline passed its IATA
Operational Safety Audit, demonstrating that it is
fully compliant with global best-practice standards
for flight operations, aircraft maintenance and
safety management systems.
The airline is planning for g rowth in passeng er
numbers from 10.3 million in 2008 to 27.6 million
by 2014, with operating revenue increasing from
18.1 trillion rupiah (US$1.96 billion) to 57.9
trillion rupiah over the same period.
The carrier is also in discussions about joining
the SkyTeam global airline alliance, and plans to
“e v entually” spin o ff its Citilink low-cost operation,
says Satar. ●
Mahindra set to
purchase in March
Indian automotive and information te chnolog y
group Mahindra and Mahindra was expected
to complete its acquisition of a majority stake in
Australian general aviation manufacturer Gippsland
Aeronautics by early March.
The acquisition will allow Victoria-based Gippsland
to restart production of the Nomad twin-turboprop,
high-wing , short take-off and landing aircraft, which it
has rename d the Air van GA18.
Mahindra late last year announced plans to purchase
maj ority stakes in Gippsland and aircraft c omponent
and assemblies company Aerostaff Australia in a Rs1.75
billion (US$38 million) deal. Mahindra, which is best
known for utility vehicle and tractor manufacture, believes
Gippsland’s a ircraft portfolio – primarily the GA8 Airvan
utility aircraft – fits well with its own aerospace ambitions.
Mahindra is jointly developing the NM5 general
aviation aircraft with India’s National Aeronautics
Laborator y. The GA8 Airvan complements the NM5,
the Indian company says .
The investment from Mahindra will cover the GA18
programme, says sales manager Marguerite Morgan.
Gippsland is proposing an upgraded version of the 18-seat
Nomad, featuring new engines, propellers, a glass cockpit
and weight-saving measures including new batteries.
The programme has slipped by six months, with a
production aircraft now expected to be ready by the
end of 2011 or early 2012. The manufacturer has letters
of intent for nine aircraft plus expressions of interest,
with considerable interest shown at the show, according
to Morgan. ●
A new fleet, including Boeing 737-800 jetliners, is part of Garuda’s Quantum Leap programme.
7/03/10 12:09 PM
7/03/10 12:09 PM
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