Garuda in $1 bln deal for 25 Boeing planes

Indonesian airline Garuda has signed a deal to buy 25 Boeing 737-800 jets worth up to $1 billion, the carrier's chief executive said on Monday, as it moves to upgrade its ageing fleet.

Emirsyah Satar declined to give an exact value for the deal, but told a news conference that each passenger plane costs $35-40 million.

Indonesia's air safety record has come under scrutiny recently after a series of accidents. Results of an audit of 54 aviation firms issued last week revealed that none, including Garuda, made it to the first of three safety ratings.

"This is our effort to replace our old aircraft with new ones," Satar told reporters, adding the planes should arrive between 2009 and 2012.