Garuda Indonesia Signs MOU with Airbus for 50 A320

The contract was signed by the President & CEO of Garuda Indonesia, Emirsyah Satar and Chief Operating Officer, Customer Airbus, John Leahy, at the Airbus chalet (pavilion) in Le Bourget during the 2011 Paris Airshow.

In the agreement, Garuda Indonesia specified an order of fifty aircraft, consisting 25 firmed order and 25 of optional orders.

The twenty five firmed orders aircraft comprising fifteen Standard A320 aircraft and ten A320 Neo. These twenty-five aircraft will be joining the Garuda Citilink's fleet in stages from 2014 to 2018 a total of five aircraft per year.

President & CEO Garuda Indonesia Emirsyah Satar said that this contract with Airbus is part of Garuda Indonesia's efforts to increase the capacity of Garuda Citilink to cope with the growing of low cost market. "The combination of comfort for passengers, proven reliability for high frequency services and low operating costs made the A320 the clear favourite to enable Garuda Citilink to develop its full potential in the competitive low cost market." Added Mr. Satar.

Chief Operating Officer, Customers, Airbus, John Leahy said ", The announcement marks a new milestone in our long relationship with Garuda Indonesia". "The A320 will enable Garuda Citilink to develop profitably its share of the fast-growing Indonesian market, benefitting from the lowest operating costs available today - which are about to get even lower with the arrival of the A320neo."John Leahy added.

Garuda Citilink is a Strategic Business Unit (SBU) of Garuda Indonesia which provides low cost services. In the midst of booming low cost market in the domestic and regional sectors, the recent purchase is expected to enhance Garuda Citilink's steadily expanding market.

Currently, Garuda Citilink operates six B-737-300s and -737-400s to serve and connect eight destinations in Indonesia, namely Jakarta, Surabaya, Denpasar, Batam, Balikpapan, Banjarmasin, Makassar and Medan. Later this year, Garuda Citilink will begin to operate the A320 leased aircraft.

A320 Family

Incorporating new engines and large wing tip devices called sharklets, the A320 neo will deliver fuel savings of 15 percent and additional range capability of over 500 nautical miles (950 kilometers), or the ability to carry two tonnes more payload. For the environment, the fuel savings translate into some 3,600 tonnes less tonnes CO2 per aircraft per year. In addition, the A320neo will provide a double-digit reduction in NOx emissions and reduced engine noise.

The A320 Family (A318, A319, A320 and A321) is recognised as the benchmark single-aisle aircraft family. Over 7,000 A320 Family aircraft have already been ordered and almost 5,000 delivered to more than 320 customers and operators worldwide. The A320neo will have over 95% airframe commonality with the existing models, enabling it to fit seamlessly into existing A320 Family fleets. The new engines types offered on the A320neo are CFM International's LEAP-X and Pratt & Whitney's PurePower PW1100G