Garuda Indonesia Set to Renegotiate Boeing Aircraft Orders
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22 March 2019 09:28 WIB
TEMPO.CO, Jakarta - Garuda Indonesia president director I Gusti Ngurah Askhara Danadiputra implied that the state-run air carrier will start to negotiate with Boeing Co. regarding its remaining orders placed on 49 Boeing 737 MAX 8 units.
The negotiation, he says, will start next week in the presence of Boeing’s representative in Jakarta.
“They will be arriving at our offices on March 28, 2019. We will convey the options we have set to them,” said Askhara on Thursday, March 21.
Read: Garuda Indonesia Awaits Boeing Response on Aircraft Order
Garuda Indonesia, Askhara explained, has spent a pre-down payment (PDP) of US$26 million for 50 orders to Boeing. Prior to the mandatory global FAA grounding of every 737 MAX 8 aircraft, only one unit out of the 50 orders was sent to Garuda Indonesia.
He explained that the first option from Garuda is to negotiate a discount for the PDP on ensuing orders since the contract clause states that air carriers cannot draw deposited PDPs.
As for the replacement of Boeing 737 MAX 8, Garuda Indonesia has yet made a decision and intends to know that Boeing might offer. The second negotiation plan is to place no more orders for Boeing planes in the future if the first option fails.
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