JOURNAL ARTICLE

Garuda New 737 Jet's Higher Rent May Strain Finances Further.

  • Published In: Bloomberg.com, 2025. P. N.PAG 1 of 3

  • Database: Business Source Ultimate 2 of 3

  • Authored By: Suhartono, Harry 3 of 3

Abstract

The article focuses on Garuda, the Indonesian airline, which is facing financial challenges as it leases a new Boeing 737 Max 8 at a cost of approximately $400,000 per month, double the $200,000 monthly lease for its older 737-800 fleet. Despite the new aircraft's better fuel economy, it remains uncertain if the savings will offset the higher leasing costs. Garuda, now owned by Indonesia's sovereign wealth fund Danantara, reported a significant loss in 2024 following a major debt restructuring in 2022. The airline is also struggling with maintenance costs, with a notable percentage of its fleet grounded, and may face additional pressure from a recent trade deal involving the purchase of 50 Boeing aircraft. [Extracted from the article]

Additional Information

  • Source:Bloomberg.com. 2025/07, pN.PAG
  • Document Type:Article
  • Subject Area:Business and Management
  • Publication Date:2025
  • Accession Number:186808588
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