REPUBLIKA.CO.ID, TANGERANG -- Indonesia's state-owned airline, PT Garuda Indonesia Tbk., will procure 23 planes in 2016 to increase its capacity in view of the expected eight percent rise in passenger traffic and ASEAN Open Sky.

The company's president director, M Arif Wibowo, said after an ISO signing ceremony here on Thursday that the decision was taken in view of the increasing competition in the airline industry.

"To cope with an increase in passenger traffic, we will enhance our capacity by procuring 23 more aircraft to take the number of planes the company has from 187 to 210," he said.

He said the company will be adding five Airbus 330, one Boeing 777, nine ATR 72-600 and eight Airbus 320 to its fleet.

"The eight Airbus 320 will be for Citilink Indonesia (Garuda's subsidiary)," he said.

He admitted the purchase was a part of the capital spending cleared for 2016, and it is now in the realm of around US$500 million.

"The capital expenditure would be the backbone of growth," he said.

Arif said 15 of the 23 new aircraft would be operated for hajj and minor hajj pilgrimage services.

"We will deploy the wide body Boeing-777 next year," he said.

He said competition in the hajj and minor hajj services sector is becoming increasingly fierce with an increasing number of foreign airliners serving the Mecca and Madinah routes.

In view of that, he urged the government to set a limit on the foreign airlines operating hajj and minor hajj services.

"If necessary, the government must ban them because we have a lot of national airlines to service the sector," he said.

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