The Boeing Company (BA) Got $4.9 Billion 737 MAX Fleet Order from Garuda Indonesia

The Boeing Company (NYSE:BA) got an order of 50 737 Max 8s from Garuda Indonesia, the Indonesian flag carrier airline. The agreement comes with a $4.9 billion price tag and it will allow the Indonesian airlines to meet its market demands.

Boeing (BA)

According to the news release from Boeing, Garuda Indonesia is going to purchase 46 737 MAX 8s and convert its previous order of 4 next-generation 737-800s to 737 MAX. The carrier has a current fleet of 77 Boeing 737s and the new addition will extend its fleet to 127 jetliners. The CEO of Garuda Indonesia, Emirsyah Satar, said,

“The 737 MAX 8 represents a bright, efficient future for Garuda Indonesia. This order helps continue our commitment to offer the people of Indonesia and Southeast Asia the most comfortable, most efficient air travel in the region.”

The Boeing Company (NYSE:BA) was positive about the deal and Dinesh Keskar, Senior VP of Asia Pacific and India Sales for Being Commercial Airplanes, said,

“The 737 MAX will be a great addition to the Garuda’s fleet. It will build on the strong tradition of service that Garuda Indonesia has established with the 737 family. This order demonstrates Garuda’s trust in Boeing and a strong commitment to operate the most fuel-efficient single-aisle airplanes in the market today and in the future.”

The 737 MAX 8s from Boeing are known to carry some of the best technologies in the aviation industry including CFM international LEAP-1B engines and improved winglet technology that allows it to offer high reliability and efficiency. One of the key factors is the fuel efficiency of 737 MAX and it is likely to be 14% more efficient against its closest rival, Next-Generation 737s.

Earlier, Garuda Indonesia said in November that the airline would double its fleet to 250 by 2025 to suffice the increasing needs of the most active airline markets of the world.

This article has been written by Prakash Pandey.

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