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Garuda Indonesia Ordering 50 Boeing 777s?? Now I am Curious...

Intro


Garuda has long been my second-favorite airline in the world, after Thai Airways, but to say they have had a turbulent past decade would be an understatement. Whether it be the scandal surrounding the A330-900Neos, or the London route that they couldn't make up their mind on how to route it, it's been rough for the airline.


Well, here is something you probably didn't know. Garuda is in talks to acquire 50 Boeing 777s. While details are scarce in English, I will try and break down what's going on here.


The Details


Okay, I am not sure about all of the details, so I will break it down in bullet points about what I have found out surrounding this matter:


  • Garuda Indonesia is attempting to purchase 50 Boeing 777s

  • The proposed budget is that Garuda would spend 3.2 billion USD on these 777s, and that a maintenance contract would be signed for 11.2 billion, spanning through 2041.



Okay, so we'll unpack how wild it is that Garuda is set to order 50 777s later, but let's touch upon why this is becoming headlines in Indonesia, as it's controversial. Here are a few more bullet points for you:


  • Garuda is 60.42% owned by the Indonesian government, and the government has begun getting involved with the negotiations.

  • Why? Because Boeing is based in the US, and Trump has recently imposed the 32% tariffs on exports to Indonesia.

  • However, Garuda is approaching this angle in a way that it will improve diplomatic ties and 'balance trade'.

  • Indonesia has attempted to bring down the tariffs on this, and they now sit at 19%...


Why Are They Buying 50 777s???


Let's start with this. Garuda currently has a long-haul operational fleet of a whopping 19 aircraft, 7 of which are the 777 variant. So, for an airline to place an order for 50 widebodies is quite baffling. To take it a step further, most airlines are investing in the 787 and A350s due to fuel efficiency, but Garuda is reverting back to the 777? I am all for it, it's just a touch confusing. These are the reasons they claim:


  • Garuda wants to expand their long-haul market and believes the 777 is the best aircraft to do this.

  • Demand for flights within Indonesia has fallen drastically (supposedly), but international demand is growing rapidly.

  • Garuda wants to operate 100 destinations, with 1/3 being international going forward.

  • Possible diplomatic reasons, but I don't know much about what goes on behind the scenes, sadly (maybe thankfully here).

  • A group by the name of Danantara is attempting to revive Garuda to compete in the Southeast Asia market.



However, they never give a flat-out reason as to why they are choosing the 777. Not much adds up here if you ask me...


Final Thoughts


For the past while now, Garuda Indonesia has been attempting the purchase of 50 777s in hopes of expanding its long-haul network moving forward. While there are many reasons behind this, I still have so many questions. The most pertinent: why on earth are they choosing the 777?? Why not the more fuel-efficient 787 if this truly is for diplomatic reasons?


I want to add that the few reports I read claimed these were all 777s, but one report claimed it is a mix of aircraft.

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