FLGS – Global Finance Report

PT Garuda Indonesia is proposing 1.5 billion loan-two billion dollars to the Export-Import Bank or in the U.S. Exim Bank to finance the procurement of Boeing aircraft types.

“The proposal immediately loan proposals are due to Exim Bank,” said President Director of Garuda Satar on the sidelines of the signing of a Memorandum of Understanding Self-BTN-Social Security and Social Security, Monday (21/06/2010) at the Ministry Office in Jakarta SOEs.

According Emirsyah, to stabilize the financial plan, the institute is doing maturation concepts including seeking the opinion of the Ministry of SOEs on behalf of the shareholder of Garuda. “We are still discussions. I’ve met with the chairman of Exim Bank,” he said.

According Emirsyah, Garuda Indonesia in 2010 will bring as many as 14 Boeing 777 type, and 25 units of 737-800. “According to the proposal, funding from the Exim Bank will be used to purchase 24 aircraft,” he said.

The financing for the procurement of 15 units of Boeing 737 was obtained. According to him, all aircraft will be brought in gradually. “Not all aircraft orders arrive in the country. But with an average of two aircraft received every month,” said Emirsyah.

He expressed, in the company’s aircraft procurement funding to realize this red plate, the company can do two ways, namely bank loans from the Exim Bank and financial services institutions. “We can also combine both sources of funding,” he said.

However, Garuda has been thought still tend to use financial services in line with the financial condition of the company. “We hope that the 2010 aircraft procurement plan complete with financing that was completed in 2011,” said Emirsyah.