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Airbus signs £4bn deal with Indonesia’s national airline

Dara Jegede

A330neo
A330neo

The deal is expected to bring up to £1 billion to the UK’s economy and create jobs at Airbus' UK sites



Airbus will supply air travel operator Garuda Indonesia with its next generation aircraft, A330neo, in a deal worth £4 billion. Rolls Royce will provide engines and support as part of the agreement to upgrade the airline’s current A330 fleet.

The purchase is expected to expand and bolster Garuda’s medium and long haul network, delivering a more efficient operation and a range increase of up to 400 nautical miles. Airbus will fulfil a standing order for seven A330-300 aircraft and deliver the A330neo from 2019 onwards.

Arif Wibowo, chief executive of Garuda Indonesia, said: “The A330neo represents a more-efficient future for Garuda Indonesia. This order restructuring is believed to support our continued commitment to deliver the most modern, comfortable and excellent air travel service to all customers as well as to strengthen the sustained positive growth and business expansion of the company. We are confident that this latest technology aircraft will support us to compete better in the industry.”

The first A330-800neo and A330-900neo aircraft are expected to hit the market in 2017. These latest additions to Airbus’ widebody range feature Rolls Royce’s new Trent 7000 engines, Airbus’s new Airspace cabin setup and state-of-the-art technology. The machines also boast better fuel economy by up to 14% per seat and with aerodynamic improvements, Airbus says the airplanes are most cost efficient long range widebody planes available.

Airbus chief operating officer Tom Williams said: “We are delighted to welcome Garuda Indonesia as a new customer for the A330neo. The A330neo will bring a range of benefits from unbeatable operating economics, including significant reductions in fuel consumption, lower maintenance costs and extended range capability. The aircraft will have Airbus’ all new Airspace cabin which will ensure the A330 continues to be a benchmark for passengers and airlines alike.”

Airbus Downing street

The deal, signed at Downing Street, represents a milestone in Garuda long-established relationship with both Airbus and Rolls Royce. The move is expected to bring up to £1 billion to the UK’s economy and create job at the Airbus sites in Filton, near Bristol and Broughton, Wales, as well as across the supply chain.

Prime minister David Cameron said: “This deal underlines the increasing importance of our ties with Indonesia – a fast growing economy and set to become the seventh largest in the world by 2030. We are the fifth biggest investor in Indonesia and our relationship has more untapped potential. We want to encourage more British businesses to seize on these opportunities and we will continue to support them by banging the drum for British skills and expertise.”

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