Garuda Indonesia will buy 100 planes worth IDR 37.5 trillion

In order to strengthen its position in commercial aviation, PT Garuda Indonesia (Persero) Tbk will gradually increase the number of aircraft. The company's ambition is to bring 100 units of aircraft until 2015.

President Director of Garuda Indonesia, Emirsyah Satar said it had set up an investment of IDR 37.5 trillion to streamline the plan. "Investing is not yet included for maintenance facility outside of Jakarta," he said in Jakarta.

Emirsyah said two-thirds of the value of the investment is the purchase of new aircraft from bank debt. "We have formed a partnership with Standard Chartered," he said. Not only that, the company also opens the option to issue bonds or shares (rights issue).

Currently, the company's stock coded GIAA has had 94 aircraft. If all aircraft orders arrived, Garuda Indonesia to fly as many as 194 aircraft. Fleet that will be imported is composed of several types. The details, as many as 50 Boeing 737-800, 10 Boeing 777-300ERs, 36 units Bombardier CRJ100, and the rest of Airbus.

Garuda Indonesia's just not going to buy the whole plane. Some of them rent or lease status. Unfortunately, Emirsyah not reveal its composition. Vice President Corporate Communications Garuda Indonesia, Pudjobroto explained that currently half of Garuda Indonesia's own status and half rent. He admitted, it is easier to buy than rent a plane. "Renting is also a strategy of keeping aircraft average age of the aircraft still young, which is five years," he said.

Later, the new aircraft will be used to connect the hub in Indonesia. Fleet will be brought not only to the needs of Garuda, but also for Citilink Indonesia that business in low-cost service.

Pudjobroto explained, adding the aircraft would be done gradually. In the second semester, the Garuda will add 11 aircraft. Thus, at the end of this year, Garuda will operate 105 aircraft. In October, Garuda will be the arrival of two units with a capacity of 96 passenger Bombardier CRJ100. "The aircraft will be put in Makassar hub for low-density routes," said Pudjobroto.

In addition to strengthening its fleet, the airline will also continue development of five hubs. After Jakarta and Denpasar, the next hub will be built is Makassar, Medan and Balikpapan.

Currently, Garuda has started putting planes in Makassar hub. While the hub Medan expected to be completed next year as it is awaiting the readiness Kualanamu Airport. While the Singapore hub will begin construction next year.

Later, after the fifth hub operations in 2014, Garuda flight frequency targets were now only 390 a day to 1,000 a day. With the increasing frequency of flights, Garuda also targets increasing the number of passengers. If last year flew 17.1 million people this year to 45.4 million. The number was a combination passenger and Citilink Garuda.

In 2012, Garuda eyeing a revenue of IDR 32.59 trillion. The amount is 20% higher than last year's realized income, IDR 27.16 trillion. Until the first half of this year, Garuda Indonesia has earned revenues of U.S. $ 1.51 billion, or around IDR 13.89 trillion. Revenue was up 17% compared to the same period in 2011. But, Garuda still bear a net loss of U.S. $ 2.02 million in the first half of this year.

Singapore's APL to quit Westbound Transpacific Stabilisation Agreement

SINGAPORE's APL, the container shipping arm of shipping group Neptune Orient Lines (NOL), is quitting the Westbound Transpacific Stabilisation Agreement (WTSA), the discussion forum covering the westbound trade from the US to Asia, with effect from September 1.

APL is the third carrier to leave the WTSA over the past decade, following in the footsteps of MOL's departure in June 2005 and previously Maersk Line, which was known at the time as Maersk Sealand and left the group in July 2002.

This reduces WTSA members to nine shipping lines: Hapag-Lloyd, Hyundai Merchant Marine (HMM), "K" Line, NYK Line, OOCL, Cosco, Evergreen, Hanjin and Yang Ming.

According to Alphaliner estimates, the remaining WTSA carriers, as of August, control 55 per cent of the total westbound Asia-North America capacity.

It said the 15 member ocean liners of the WTSA's eastbound counterpart, the Transpacific Stabilisation Agreement (TSA), control an estimated 92 per cent of total capacity on the Asia-North America route.

TSA members include: APL, Maersk, China Shipping, CMA CGM, Mediterranean Shipping Company (MSC) and Zim.

The Westbound Transpacific Stabilisation Agreement  (WTSA) was established in 1990 to replace a more rigid rate conference system for the US-Asia market. It offers a discussion forum for its members to develop non-binding guidelines relating to freight rates, surcharges and other fees.