Garuda Indonesia Bets on Return of Boeing 737 Max to Its Fleet
The state-owned airline Garuda Indonesia is in negotiations to reintegrate the Boeing 737 Max 8 into its fleet, marking a significant shift after years of distancing itself from the model following the tragic Lion Air flight accident in 2018. The information was confirmed by BOC Aviation Ltd., which stated it is in “commercial discussions with Garuda regarding a B737-8,” according to Timothy Ross, the company’s head of investor relations.
A Strategic Move Backed by Financial Support
The potential return of the 737 Max 8 to the airline comes at a pivotal moment for Garuda. The company has just received a financial boost of $405 million from Indonesia’s sovereign wealth fund, Danantara, aimed at stabilizing its finances and enabling fleet expansion. This particular Max 8, previously operated by Lynx Air International and Air Canada, would be leased, alleviating immediate financial pressure.
The 737 Max’s Troubled History in Indonesia
Garuda was one of the first operators of the Max 8 in Asia, receiving its first unit in late 2017. However, the fatal crash of Lion Air Flight 610 in October 2018, which claimed 189 lives after plunging into the Java Sea, triggered a global crisis of confidence in the model. The tragedy was followed months later by another accident involving Ethiopian Airlines, leading to a worldwide grounding of the aircraft for nearly two years.
→ Air Safety Audit in India Reveals Multiple Failures in Airlines and Airports
As part of a debt restructuring plan totaling close to $10 billion, Garuda returned its sole Max 8 unit and sought to cancel a pending order for 49 aircraft valued at $4.8 billion. Skepticism also came from the airline’s own executives, who were concerned about the public’s negative perception of the plane.
Operational Reality: Grounded Aircraft and Fleet Renewal Needs
The interest in reintroducing a Max 8 signals a shift in strategy. Garuda currently faces challenges in keeping its fleet operational: at least 15 aircraft remain grounded due to delayed maintenance payments, according to recent reports by Bloomberg News. In this context, operating more modern, efficient, and readily available leased aircraft like the Max 8 could be a fast track to regaining competitiveness.
Other Players Have Already Taken the Leap
Garuda would not be the first Indonesian airline to renew its trust in Boeing’s model. Lion Air—the carrier involved in the accident that sparked the crisis—and PT Airfast Indonesia have already reintroduced the 737 Max into their operations, suggesting growing acceptance of the model within the country and its regulatory environment.
The return of the Boeing 737 Max 8 to Garuda Indonesia would mark a turning point in its fleet strategy. In an increasingly competitive market with budgetary constraints, the Max’s efficiency and availability could make it a key ally in the national airline’s recovery.
Related Topics
Avianca Expands Its Business Class Experience to Over 80 International Routes in the Americas
Arajet Announces Direct Flights Between Punta Cana and Córdoba, Argentina
Porter Airlines Announces Flights to Mexico, the Caribbean, and Costa Rica from Canada for Winter
LATAM Launches Two New Routes Between Brazil and Argentina
Plataforma Informativa de Aviación Comercial con 13 años de trayectoria.