While most Asian carriers are reducing capacity in the face of the downturn, Garuda Indonesia has been expanding and posting profits.Garuda made a net profit of 669 billion rupiah ($67 million) last year and for the first half of this year the numbers are higher. This profitability to the Indonesian economy which, unlike many other Asian economies, has avoided recession. But citing fuel price volatility, he stops short of saying full-year profits will be higher.
Garuda plans to roughly double its fleet to 20 Airbus A330s,90 Boeing 737s and up to six Boeing 777-300ERs by 2014. It has been able to easily add leased aircraft. This is in sharp contrast to a few years ago when it struggled to convince lessors to place their aircraft with the carrier. Garuda previously had difficulties with European export credit agencies over the financing for six A330-300s it bought in the 1990s. Garuda reached a preliminary agreement whereby it will pay some money and extend the loan period.