ALAFCO and Garuda Indonesia Sign Agreements for the Financing of 2 B777-300ER Aircraft

Jakarta, Indonesia, Apr 22, 2013 – (ACN Newswire) – ALAFCO Aviation Lease And Finance Company and PT Garuda Indonesia (Persero) Tbk (IDX: GIAA) jointly held a formal signing ceremony today in Jakarta to commemorate the financing of 2 Boeing 777-300ER aircraft. Under the transaction, ALAFCO will be financing 2 Boeing 777-300ER aircraft for Garuda Indonesia through a sale and lease back scheme. The aircraft will be delivered from Boeing in June 2013 and July 2013.

Present at the signing ceremony were ALAFCO’s Chairman Mr. Ahmad A. Alzabin and Garuda Indonesia President & CEO Mr. Emirsyah Satar, who said “Mr. Alzabin said ALAFCO is very proud to have Garuda as a new customer. He said the airline’s management and Board have done a remarkable job in turning this airline around and making it the pride of Indonesia, and is confident the airline will continue to reach new heights in the coming years. He also said that this transaction is the first in Indonesia, where the aviation industry is growing rapidly on the back of a strong economy that is forecasted to grow at an average rate of 6-7 percent annually until 2017 and be among the top six global economies by 2030”.

Alzabin also said that the B777-300ER is the best aircraft in its class today that will provide Garuda and its customers years of reliable service and comfort. These two B777-300ER aircraft are the first in Garuda’s fleet and the lease is structured in accordance with Islamic Sharia principles. Finally, Alzabin said he hopes to enter into more transactions with Garuda and support its future growth plans."

Mr. Satar was thanking ALAFCO for the partnership of the financing for the B777-300ER aircraft with Garuda Indonesia and said this is an important milestone for Garuda Indonesia since this was the first time for Garuda Indonesia to enter a new era of partnership in accordance with Sharia principles.

“These two aircraft is part of 10 B777-300ER which was ordered to Boeing Company and four aircraft will be delivered this year. Two aircraft will soon serve Jakarta – Jeddah on July, and two other aircraft will serve Sydney – Jakarta – London on Q4 this year. From operation point of view, this new fuel-efficient and state-of-the-art aircraft will give more comfortable traveling to our passengers and allow Garuda to maintain its more efficient operations,” said Satar.

As part of its “Quantum Leap Program 2011 – 2015”, Garuda Indonesia will welcome 24 brand new aircraft this year alone, including four Boeing 777-300ER, three Airbus A330, ten Boeing 737-800NG, and seven Bombardier CRJ1000 NextGen. By 2015 Garuda Indonesia will see its fleet grow from the current figures of 106 aircraft 194 aircraft with an average of age less than five years.