Garuda’s $10 Billion Comeback? Airline in Surprise Talks for Massive Boeing Deal

Garuda Indonesia could be preparing for its biggest fleet shake-up in years. CEO Wamildan Tsani Panjaitan told reporters the airline is in talks with Boeing (NYSE:BA) to purchase between 50 and 75 aircraft, including the 737 Max 8 and 787-9 models. The discussions come as Garuda looks to scale up its international presence and move toward operating 120 aircraft within five yearsup from the current 98 between Garuda and its low-cost unit, Citilink. No timeline has been set, and Panjaitan didn’t confirm whether the deal would be tied to broader U.S.Indonesia trade negotiations.

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.