Garuda has ambitious targets for 2014

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boeing-777-300Indonesia’s flagship carrier Garuda has embarked on a business expansion strategy to tap the growing aviation market potential in the country, its president director Emirsyah Satar said in Jakarta on April 2.

Indonesia’s air traffic passengers rose to 94.9 million last year or 39 per cent of the total population of the country, which was 244.5 million. The country’s flourishing economy has contributed to the airline industry’s improving potential. Indonesia was predicted to become the world’s seventh biggest economy by 2030.

As part of its business expansion strategy, Garuda had improved its services, convenience and security as well as established alliances with a number of other airlines by joining the SkyTeam, Satar said. The airline had received the certificate of IATA Operational Safety Audit (IOSA) from IATA, meaning that Garuda had fully met the international flight security standard.

Garuda, which carried 90,108 Indonesian hajj pilgrims to Saudi Arabia last year, also won the title of “The Best Airline” for the Hajj Season 1434H/2013 from the kingdoms Abdul Aziz International Airport aviation authorities.

Last year, it also won “The Worlds Best Economy Class 2013” award from Syktrax and was placed 13th in Skytraxs Global Airline Rankings. Emirates, Qatar Airways, and Singapore Airlines ranked first, second and third, respectively, in the Global Airline Rankings 2013.

“With the successes that were achieved over the past few years, Garuda Indonesia had made a quantum leap to develop and dominate the Indonesian aviation market,” Satar said.

Garuda’s “quantum leap” strategies to boost growth include expansion, fleet rejuvenation, brand strengthening, improvement of its product and service quality, efficiency in cost structure and improvement of the human resources quality and quantity. In 2014, Garuda Indonesia had set a target to serve 30 million passengers, an increase from 25 million passengers who flew with Garuda in 2013.

“We target an increase of 15-20 per cent in 2014,” Emirsyah Satar stated.

Garuda booked an operational income of $3.72 billion in 2013, up seven per cent from the previous year. However, it recorded a decrease in its profit from $168.1 million in 2012 to $56.4 million last year, because of its investments in fleet expansion and Citilink as a low-cost carrier. The seat load factor in 2013 marginally dropped to 74.1 per cent from 75.9 per cent in the previous year.

“The performance of Garuda in 2013 was severely affected by the rupiah depreciation and high growth as well as investments on improving the airlines position in the future,” Satar said.

In the first quarter of last year, Garuda expanded flight networking to six new international routes to Europe and the Middle East, to Frankfurt, Brussels, Milan, Dusseldorf, Munich, and Bahrain, a route served by Ettihad Airways. In the second quarter, Garuda signed a funding agreement for two jetliners B777-300ER and paid syndicated debts worth $55 million. In the third quarter, Garuda paid debts of $75 million from Indonesia Exim Bank.

Expanding its businesses, the airlines started flying to nine domestic destinations and 25 domestic routes that contribute to an 80 per cent increase in its domestic flights per day. It also plans to open three new international destinations in 2014.

“The new international flight destinations were London, Manila and Mumbai,” Satar said.

Last year, Garuda Indonesia had opened two international destinations and six international routes. The new routes were expected to develop and to strengthen the airlines flight network as well as to meet the anticipated increase in the number of airlines passengers.

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Reading Time: 3 minutes

Indonesia’s flagship carrier Garuda has embarked on a business expansion strategy to tap the growing aviation market potential in the country, its president director Emirsyah Satar said in Jakarta on April 2.

Reading Time: 3 minutes

boeing-777-300Indonesia’s flagship carrier Garuda has embarked on a business expansion strategy to tap the growing aviation market potential in the country, its president director Emirsyah Satar said in Jakarta on April 2.

Indonesia’s air traffic passengers rose to 94.9 million last year or 39 per cent of the total population of the country, which was 244.5 million. The country’s flourishing economy has contributed to the airline industry’s improving potential. Indonesia was predicted to become the world’s seventh biggest economy by 2030.

As part of its business expansion strategy, Garuda had improved its services, convenience and security as well as established alliances with a number of other airlines by joining the SkyTeam, Satar said. The airline had received the certificate of IATA Operational Safety Audit (IOSA) from IATA, meaning that Garuda had fully met the international flight security standard.

Garuda, which carried 90,108 Indonesian hajj pilgrims to Saudi Arabia last year, also won the title of “The Best Airline” for the Hajj Season 1434H/2013 from the kingdoms Abdul Aziz International Airport aviation authorities.

Last year, it also won “The Worlds Best Economy Class 2013” award from Syktrax and was placed 13th in Skytraxs Global Airline Rankings. Emirates, Qatar Airways, and Singapore Airlines ranked first, second and third, respectively, in the Global Airline Rankings 2013.

“With the successes that were achieved over the past few years, Garuda Indonesia had made a quantum leap to develop and dominate the Indonesian aviation market,” Satar said.

Garuda’s “quantum leap” strategies to boost growth include expansion, fleet rejuvenation, brand strengthening, improvement of its product and service quality, efficiency in cost structure and improvement of the human resources quality and quantity. In 2014, Garuda Indonesia had set a target to serve 30 million passengers, an increase from 25 million passengers who flew with Garuda in 2013.

“We target an increase of 15-20 per cent in 2014,” Emirsyah Satar stated.

Garuda booked an operational income of $3.72 billion in 2013, up seven per cent from the previous year. However, it recorded a decrease in its profit from $168.1 million in 2012 to $56.4 million last year, because of its investments in fleet expansion and Citilink as a low-cost carrier. The seat load factor in 2013 marginally dropped to 74.1 per cent from 75.9 per cent in the previous year.

“The performance of Garuda in 2013 was severely affected by the rupiah depreciation and high growth as well as investments on improving the airlines position in the future,” Satar said.

In the first quarter of last year, Garuda expanded flight networking to six new international routes to Europe and the Middle East, to Frankfurt, Brussels, Milan, Dusseldorf, Munich, and Bahrain, a route served by Ettihad Airways. In the second quarter, Garuda signed a funding agreement for two jetliners B777-300ER and paid syndicated debts worth $55 million. In the third quarter, Garuda paid debts of $75 million from Indonesia Exim Bank.

Expanding its businesses, the airlines started flying to nine domestic destinations and 25 domestic routes that contribute to an 80 per cent increase in its domestic flights per day. It also plans to open three new international destinations in 2014.

“The new international flight destinations were London, Manila and Mumbai,” Satar said.

Last year, Garuda Indonesia had opened two international destinations and six international routes. The new routes were expected to develop and to strengthen the airlines flight network as well as to meet the anticipated increase in the number of airlines passengers.

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