Business plan

Garuda will modify his business plan in the near future: ministry

Jakarta (ANTARA) – Airline Garuda Indonesia will modify its business plan soon after the trial of the decision to confirm the results of the postponement of debt payment obligations (PKPU) of Garuda Indonesia was granted, said Deputy Minister of Public Enterprises II Kartika Wirjoatmodjo.

He noted that Garuda is also focusing on domestic and cargo flights. For domestic flights, Garuda will only fly to popular destinations in Indonesia, such as Bali, major cities and other tourist attractions.

For the freight sector, Garuda is developing an open skies policy which is under discussion at the Ministry of Transport. Later, Garuda can cooperate with international airlines as carriers that fly to domestic destinations.

“Many international airlines have become anchor players, such as Singapore, Qatar and Dubai. They don’t have a domestic market in Indonesia. Therefore, we will be the liaison with the domestic sector,” Wirjoatmodjo told a press conference on Tuesday.

Currently, several international markets are eyeing products from eastern Indonesia, especially marine products. It is possible for Garuda to target direct shipments from eastern Indonesia to Japan, Hong Kong and Singapore, he added.

Garuda also studies the market share of extra or overweight luggage. According to the data received by Garuda, most Indonesians always buy a lot of souvenirs when traveling on board. This is where Garuda offers cargo for overload at an affordable price.

This commercial focus is followed by the efficiency of Garuda’s fleets. The company has reduced the number of its planes, from 210 planes in 2020 to 120 planes in 2022, comprising 94 narrow-body planes and 26 wide-body planes.

“In addition, Garuda enforces hourly electricity regulations, so Garuda only pays for aircraft rentals each time they are flown,” Wirjoatmodjo said.

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He said that in addition to business orientation, Garuda is looking for long-term financial investors.

With the restructuring proposal that was approved, Garuda was declared healthy in terms of cash flow. However, to be declared healthy from financial equilibrium, Garuda must first resolve rights issues one and two.

On the same occasion, Garuda Indonesia Chairman and CEO Irfan Setiaputra said that Garuda would become a profitable airline and not just an airline operating multiple routes.

To strengthen Garuda, his camp will also accelerate the growth of Citilink as a low-cost airline as a subsidiary of Garuda.

“We will also continue to consider the Hajj and Umrah markets in Indonesia. In fact, if possible, we will fly directly from major cities, such as Surabaya, Makassar and other major cities, without transit,” said added Setiaputra.

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