Garuda Indonesia to restructure fleet

Garuda Indonesia is facing pressure on yields because of over-capacity and weak economic growth, forcing it to restructure its fleet and defer some aircraft deliveries. Garuda and its budget carrier, Citilink, face intense competition from privately held Lion Airlines, which has become a dominant local player, helped by aggressive expansion. "The markets seem to be in over-capacity, not only domestic but also regional," Garuda president Arif Wibowo said. He said air traffic at the carrier had been hurt by weaker demand from the natural resources sector due to the collapse in prices for oil, gas and other commodities. He said Garuda had been deferring deliveries of some planes, adding that the airline is also restructuring its fleet to fit in more economy seats at the expense of first class seats in most of its aircraft. <br/>