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Trump’s trade deal gets Garuda Indonesia back on board with Boeing 737 Max
Jakarta plans to revive a plane order to seek favour with Trump and boost US ties despite flag carrier Garuda’s financial woes
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Five months after a Boeing 737 Max aircraft operated by Lion Air crashed into the Java Sea in 2018, Indonesian flag carrier Garuda Indonesia tried to cancel its remaining order for the same model. Now, the country is working to revive that deal as it seeks to forge favourable ties with US President Donald Trump’s administration.
Trump announced in a social media post on Tuesday that Indonesia will order 50 aircraft, including “many” of Boeing’s larger 777 planes. While Trump did not disclose a buyer, Garuda CEO Wamildan Tsani Panjaitan had previously said he is in talks to buy 50 to 75 Boeing aircraft, including 737 Max and 787-9 Dreamliner models.
The accord points to the intertwined political and economic interests whenever Trump negotiates with foreign leaders. The US president has previously announced aircraft purchases while visiting countries including Qatar, or when he has hammered out trade agreements with the likes of Vietnam or the UK.
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In Indonesia’s case, Trump said he got the deal over the line in direct negotiations with President Prabowo Subianto during a phone call.
The dilemma for Boeing is how to restore or expand the existing 49-jet Max order without leaving Garuda in a financial and strategic bind.
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The airline is already having trouble keeping its existing fleet airworthy, with at least 15 jets grounded as recently as May as it struggles to make maintenance payments.
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