Garuda Procures New Planes Using Shariah Scheme

Jakarta, April 22 (ANTARA) - Garuda Indonesia is procuring two new Boeing 777-300ERs through leasing based on a shariah financing scheme from Kuwaiti company Alafco Aviation Lease and Finance Company. "This is the first shariah-based financing scheme taken by Garuda," the state-owned airline company`s president director, Emirsyah Satar said at the signing of a cooperation agreement between Garuda and Alafco at Soekarno-Hatta airport here on Monday. Emirsyah said this was a "milestone" in Garuda`s efforts in exploring possible other financing sources. He said the shariah financing scheme was also a breakthrough to deal with large flows of funds from the Middle East. He said the shariah-based financing based on the concept of "ijarah" was worth around US$315 million for one airplane. "The funds from the Middle East have mostly been channeled through a shariah scheme," he said. Emirsyah said the financing was in line with the growth of Garuda passengers which was recorded up by around 20 percent in 2012. He said the cooperation was also in line with the company`s long-term program put in the Quantum Leap 2011-2015. Alafco chairman Ahmad Alzabin meanwhile said the company was honored to be able to cooperate with Garuda. "The signing of the agreement for two Boeing 777-300ER is the first transaction his company made in Indonesia," he said. He hoped the cooperation would continue in line with Garuda`s future growth plans.