$2.5bn plane deal seals British PM's Indonesia visit

Last Updated: Thu, 12 Apr 2012 10:22:00 +1000

European plane maker Airbus and Indonesian carrier Garuda International have signed a $2.5 billion sales deal, as British Prime Minister David Cameron led a trade delegation to Indonesia.

Garuda said it would purchase 11 Airbus A330-300s under the agreement.

Mr Cameron, who was at the signing, said Indonesia and Britain would aim to double trade.

"I brought to Jakarta today the strongest delegation of world-leading British companies ever to visit South-East Asia," he said.

Sluggish

He arrived in Indonesia on Wednesday on the latest leg of a trade mission around Asia.

The Prime Minister is seeking to offset sluggish growth at home and in the troubled European economy.

Indonesia's presidential spokesman said the deal with the airline, which is majority owned by the state, would be the "highlight" of Mr Cameron's two-day visit.

The agreement is the second in a year between the two after Garuda ordered 25 medium-range A320 Airbus planes for a price of $2.18 billion.

Less than two years ago, the European Union lifted a ban on the airline operating in European airspace over safety fears.

The British tour has also taken in Japan and Indonesia will be followed by Malaysia and Burma.