Garuda Indonesia airlines says it plans to acquire 10 787s and 18 737s from the Boeing Co.
The airline signed a preliminary agreement for the planes this week, but the deal is far from final, a Boeing spokeswoman said.
“We’re thrilled they’re interested,” said Boeing’s Yvonne Leach. “There’s still a lot that’s preliminary in terms of the 787 side.”
The deal for the Dreamliners is “a tangible step” in Garuda’s effort to regenerate its fleet and “reflects the airline’s understanding of the need for a more modern fleet to achieve an enhanced performance,” the airline said.
Garuda said it hopes to take delivery of the first 737-800s early next year, while adding the 787-8s in 2011 and 2013. The airline put the value of the deal at $2 billion, which would be a 20 percent discount off Boeing’s list prices for the planes.
In 1996, Garuda ordered six 777s from Boeing, and Leach said Friday that one of the factors still being negotiated was whether the airline will convert all or some of those orders to 787s.
Garuda is struggling financially. The airline has been running at a loss since the 1997-98 Asian financial crisis sent the value of the local currency plummeting, and passenger numbers fell off. In recent years, it has struggled against an explosion of budget carriers serving the Indonesian market.
As of Tuesday, Boeing had booked 605 firm orders for this year. That compares with 196 orders it took during the first nine months of 2004.
The Associated Press contributed to this report.
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