Garuda, Pertamina in aviation fuel deal

State-run airline PT Garuda Indonesia and state oil, gas firm PT Pertamina (Persero) had signed a Memorandum of Understanding (MoU) to secure the fuel supply for Garuda's planes in overseas countries, a media reported on Wednesday.

According to Garuda Operational Director Ari Sapari, Pertamina would secure fuel supply for Garuda's plane in Singapore, Kuala Lumpur, China's Hong Kong, Bangkok and Dubai, China's Xinhua news agency cited local media as saying.

According to Ari, Garuda's existing plane fuel procurement from Pertamina reached 325 million liters, or accounts for 65 percent of its total fuel procurement in flights to foreign countries that requires 500 million liters.

With the MoU, Ari expected that the plane fuel procurement from Pertamina could increase up to 400 million liters, or 80 percent for its fuel need in its foreign countries flights

"The agreement had actually had took into effect in April 2009, to last in two years. There is possibility to extend the cooperation after the agreement terminated in 2011," Ari said.

Meanwhile, Pertamina's Marketing and Commercial Director Achmad Faisal said that Pertamina has been teaming up with international plane fuel supply organiser, World Fuel, to secure the plane fuel supply to Garuda.

He said that it would continue using the World Fuel service to supply Garuda's plane with its fuel in those five cities.(*)