Garuda's $10 Billion Comeback? Airline in Surprise Talks for Massive Boeing Deal
Warning! GuruFocus has detected 6 Warning Signs with BA.
Garuda is also considering bringing back the 737 Max 8a model it quietly returned to lessors during its $10 billion debt restructuring. The airline had previously tried to cancel a $4.8 billion order for 49 of these planes following the 2018 Lion Air crash and a second fatal incident involving Ethiopian Airlines. Now, with a $405 million loan in hand from Indonesia's sovereign wealth fund Danantara, Garuda is re-evaluating the aircraft's place in its fleetpossibly signaling a shift in sentiment toward Boeing's embattled jet.
It's still unclear whether this new round of discussions with Boeing reflects a fresh order or a repackaging of the original 49-plane deal. But either scenario could set the stage for Garuda's comeback story. Investors watching the region's aviation recovery may want to pay attentionthis could be more than just a fleet upgrade. It might be the first real sign of Indonesia repositioning itself on the global aviation map, with Garuda as the front-runner.
This article first appeared on GuruFocus.
登入存取你的投資組合
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
26 minutes ago
- Yahoo
Boeing raises outlook for widebody freighters as 777-8 production begins
Boeing on Monday officially began production of the 777-8 freighter by drilling the first hole into a wing spar, while Airbus reached another milestone in building its new A350 freighter as the companies gear up competition for sales of large cargo jets. The developments come after Boeing (NYSE: BA) recently downgraded its 20-year forecast for air cargo volumes to 3.7% compounded annual growth from 4.1% in its 2024 commercial market outlook. Boeing also predicts total freighter aircraft entering the market by 2044 will be 2,900, up slightly from the 2,845 projection in last year's report. The lower traffic forecast reflects a higher annual growth in the 2024 base year of 11% and lower long-term economic estimates, Boeing spokesman Ted Land explained. The airfreight market experienced a strong recovery in 2024, driven by cross-border e-commerce demand, after an 18-month downturn. Boeing projects a 67% increase in the global freighter fleet by 2044, including 885 large widebody aircraft like the 777-8 and the A350 — up from 810 in the prior estimate. Total freighter production increased by 55 units despite a drop of nearly 100 narrowbody freighters over 20 years. Boeing attributes the change to growing demand for the payload and range of widebody cargo jets to support increased supply chain diversification and cross-border e-commerce at a time when airlines are accelerating retirement of older aircraft, new production has been slowed by post-pandemic supply chain backlogs and government certification for emerging 777 conversion companies has been delayed. Meanwhile, the market is oversupplied with narrowbody converted freighters. The analysis shows fewer factory-built freighters entering service than estimated last year, with 955 newbuilds versus 1,945 passenger-to-freighter conversions. 777-8 production begins The U.S. aerospace giant announced that manufacturing of the first 777-8 freighter began Monday at a plant in Everett, Washington, with a specialized robot drilling holes in the wing spar and filling them with fasteners. Spars are the backbone of a wing, serving as a critical support structure. Each wing has two spars — one in the front and one in the rear. The 777-8, now scheduled for first commercial delivery in 2028, will be the world's largest twin-engine freighter. Boeing says the plane will have 30% better fuel efficiency and emissions, with nearly identical payload and range capabilities, compared to the aging 747-400. The 777-8 also offers 25% better operating costs per ton and much quieter engines. Technical specifications include a maximum revenue payload of 123.7 U.S. tons, with main-deck capacity for 31 pallets, and a maximum range of more than 4,400 nautical miles. The 777-X program, which includes a passenger variant, was launched more than a decade ago, but has faced a series of technical and regulatory delays. The company began taking orders in January 2022 and now has 59 firm orders. Qatar Airways is the launch customer, with a firm order for 34 aircraft. Other 777-8 customers include Lufthansa, Silk Way West, Cargolux, ANA and China Airlines. To make the 108-foot long composite spars, Boeing machinists in the Wing Center guide machines that apply layers of carbon fiber tape onto large tooling to form the shape of the spar, which is then prepped and hardened through pressure and heat in an autoclave. The spars are then moved onsite for finishing work before they are moved to the main Everett factory. Airbus stays one step ahead Meanwhile, Airbus announced Wednesday that it has completed manufacturing the first horizontal stabilizer for the A350 freighter at its plants in Spain. The section will be shipped to the Airbus final assembly line in Toulouse in the coming weeks, where it will be joined with the fuselage of the first test aircraft. Airbus is manufacturing two A350 cargo jets for flight testing in 2026 and 2027. In late May, Airbus finished the first ever set of wings for the A350F. Airbus benefits from an efficiency standpoint by building the horizontal stabilizer and wings in the same production lines as the passenger version. The manufacturer has received 66 orders for the A350 freighter. It expects to begin first deliveries in late 2027 after development delays of its own. The A350's main-deck cargo door will also be manufactured in Spain. Made from composite materials, it has the largest door opening of any freighter to make loading and unloading faster and easier. Airbus says the A350 will offer at least a 20% reduction in fuel consumption and CO2 emissions compared to large cargo aircraft currently in service. The widebody freighter has a payload of up to 122 tons and a range of up to 4,480 nautical miles. Click here for more FreightWaves/American Shipper stories by Eric Kulisch. Write to Eric Kulisch at ekulisch@ RELATED STORIES: Saudi Arabia-based leasing company to buy 10 Airbus A350 freighters Airbus postpones rollout of A350 freighter until late 2027 China Airlines finalizes deal for 4 Boeing 777-8 cargo aircraft The post Boeing raises outlook for widebody freighters as 777-8 production begins appeared first on FreightWaves. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
28 minutes ago
- Bloomberg
PDD Analysts See HK Listing as More Likely After Auditor Change
PDD Holdings Inc. 's move to switch to a Hong Kong-based auditor may indicate the Chinese e-commerce firm is preparing to apply for a second listing there, according to two analysts. The parent company of budget shopping app Temu said in a filing on Wednesday that it has tapped Hong Kong-based auditors of Ernst & Young for a review of its financial statements this year. The firm previously worked with Beijing-based Ernst & Young Hua Ming LLP.
Yahoo
an hour ago
- Yahoo
Takeaways of US-Japan deal include potential gains for Trump, Ishiba and EU
(Reuters) -An emerging U.S.-Japanese trade deal could unlock major investment, avert a potential shock to the global economy and may deliver political wins for both U.S. President Donald Trump and Japanese Prime Minister Shigeru Ishiba, though many specifics of the agreement remain unclear. Here's a closer look at the early takeaways: * The deal stabilizes the global trade outlook by imposing a 15% tariff on Japanese goods — down from a threatened 25% — while Japan commits to investing $550 billion in the U.S. economy, a boost to U.S. jobs. It almost certainly averts a worst-case scenario for the Japanese economy. Moreover, if it signals that the balance of U.S. tariff rates are likely to settle in that range, Jefferies Chief Economist and Strategist for Europe Mohit Kumar said: "the world can live with 15% or so tariffs." * Trump gains some political capital ahead of November 2026 midterm elections by reinforcing his 'America First' trade stance and potentially bolstering his influence with industrial and agricultural constituencies while avoiding the market instability that loomed under earlier tariff threats. Still, not every U.S. constituency was happy with the announcement. The decision has angered the Detroit Three automakers, who still face a 25% levy on significant segments of their non-U.S. produced vehicles. * For Ishiba, the deal is a diplomatic and economic win amid domestic political turbulence. Just days earlier, Japan's ruling coalition lost its majority in upper house elections. * Analysts say the deal could serve as a benchmark for other economies negotiating with Washington, including the EU and China, both facing August tariff deadlines. * American exporters could gain broader access to Japan's markets, especially in autos and agriculture — sectors vital to U.S. economic growth. * Global financial markets are rallying led by automakers. Stocks of major Japanese firms surged following the announcement, and capital inflows are expected to continue as investors seek exposure to Japan's innovation-led growth. * Despite the investment commitments, the deal may not significantly reduce the U.S. trade deficit with Japan in the short term. Critics argue that without stronger enforcement mechanisms or structural reforms, the imbalance could persist. * A 15% tariff, though lower than the threatened 25%, still represents a significantly higher import tax for consumer goods, especially for cars and electronics, which are heavily imported to the U.S. from Japan. Yale Budget Lab last week estimated the overall average U.S. tariff rate under Trump's policy shifts has climbed to around 20% from between 2% and 3% prior to his return to the White House in January. Sign in to access your portfolio
