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  • Direct Flights from Indonesia to Moscow Set to Open

    Direct Flights from Indonesia to Moscow Set to Open

    Indonesia has planned to open direct flights to Moscow, Russia, in a bid to attract the countrys tourists to visit Indonesia.

    “Currently, we have to transit in a third country when we fly to Russia, and this could take 24 hours, whereas with direct flight, it might only take 11 hours,” Ambassador to Russia M. Wahid Supriyadi said here on Wednesday. Wahid is scheduled to hold a meeting with the management of the national flag carrier Garuda Indonesia to discuss the plan.

    “Alhamdulillah, Garuda has the commitment to fly to Moscow,” he noted. Garuda Indonesia has planned to fly thrice a week to Russia, two flights from Denpasar in Bali and one from Jakarta, from August.

    A data of the Tourism Ministry showed that some 85 thousand Russian tourists had visited Indonesia in 2016. The number is targeted to reach 100 thousand tourists in 2017. However, Wahid remarked that the number was still relatively small compared to Russian tourists visiting Thailand, which is about 1.5 million per year, through direct flights from the country.

    “Garuda’s flight would not only carry passengers but also tropical fruits and vegetables,” he revealed, adding that these commodities were scarce in Russia. Following the European Union and the US embargo, Russia would halt import of fruits, vegetables, and dairy products from the two regions as a response.

    The move would provide an opportunity for Indonesian commodities to penetrate the Russian market. “These products would have to be transported by air cargo,” Wahid pointed out, adding that Garuda Indonesia planes could carry some 5 tons of the products in one flight.

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  • East Nusa Tenggara urges Garuda to open Kupang-Dili-Darwin flight route

    East Nusa Tenggara urges Garuda to open Kupang-Dili-Darwin flight route

    The East Nusa Tenggara Tourism Office has urged Garuda Indonesia to open Kupang-Dili-Darwin flight route round trip immediately to help boost foreign tourist arrivals to the islands province.

    The head of the Tourism Office, Marius Ardu Jelamu, stated here on Tuesday that in the past year, the number of tourists visiting the province in cruises and chartered aircrafts had increased.

    According to Marius, Kupang-Darwin flights will help travelers in terms of cost and time because it only takes 1.5 hours to reach the destination.

    Marius is optimistic that the Kupang-Timor Leste-Darwin flight would increase the number of tourist arrivals to East Nusa Tenggara, considering the current growing tourism potential in the province.

    East Nusa Tenggara is increasingly attractive to domestic and foreign tourists, especially with regard to the various cultural festivals.

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  • Garuda opens Kendari-Baubau flight route

    Garuda opens Kendari-Baubau flight route

    The Indonesian flag carrier, Garuda Indonesia, opens a new flight route of Haluoleo airport in Kendari to Betoambari Airport in Baubau, Southeast Sulawesi.

    The first flight was made on Monday afternoon.

    Southeast Sulawesi Governor Nur Alam here on Monday appreciated Garuda for the flight route connecting Kendari and Baubau.

    “This will add and expand our access to air transportation and connectivity in Southeast Sulawesi,” he said.

    The Kendari-Baubau flight, Nur Alam added, will provide a fundamental trust for investors to invest in the province.

    “When Garuda opens flights in an area of course it is because there is great economic potential in that place,” he said.

    The Kendari-Bauban route is available roundtrip every day using ATR 72-600.

  • Garuda Indonesia reigns as world’s best airline cabin crew for fourth consecutive year

    Garuda Indonesia reigns as world’s best airline cabin crew for fourth consecutive year

    Indonesia’s flag carrier Garuda Indonesia has won the world’s best airline staff award for the fourth year in a row according to a survey conducted by international rating organization Skytrax.

    Garuda Indonesia took first spot in the category at this year’s World Airline Awards, dubbed as the Oscars of the aviation industry, beating other prestigious airlines in the region such as Singapore Airlines and Thai Airlines.

    In the same category, Japan’s largest airline All Nippon Airways came second, followed by Taiwan-based international airline Eva Air and Thai Airways and Singapore Airlines.  The awards were announced at the Paris Air Show yesterday.

    According to Skytrax, the award “recognizes the highest all-around performance of an airline’s cabin staff” as well as the quality of staff members’ techniques and efficiency and their enthusiasm, attitude and overall hospitality.

    The survey was conducted from August 2016 to May 2017, involving 19.8 million votes.

    This year, Garuda Indonesia improved its position in the best airline category, climbing one spot to enter the top ten carriers on the world’s best airline list.

    The world’s best airline award for 2017 went to Qatar Airways, which took the title from fellow Middle Eastern carrier Emirates.

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  • Number of Indonesian air passengers spike before Idul Fitri

    Number of Indonesian air passengers spike before Idul Fitri

    Indonesian flyers embarking on the homeward-bound Idul Fitri exodus have surged in the six days before the holiday, Transportation Ministry data has shown.

    “According to the data collected until June 20 at midnight, domestic flights have seen a 10 percent surge in passengers,” an official with the Transportation Ministry in charge of the Idul Fitri holiday daily integrated transportation post, Adi Karsyaf Rahayu, said in a statement.

    On the accumulated data from 10 days before until six days before the festivity collected from 35 airports, the number of domestic flyers has surged to 1.3 million from 1.18 million passengers in the same period last year.

    A higher jump was observed in international flights in seven airports in Indonesia six days  before Idul Fitri, with a 12.69 percent hike to 222,976 passengers from the 197,871 in the same period last year.

    The Transportation Ministry, which spearheads the coordination for this year’s annual exodus, predicted that the country would see a 4.8 percent surge in the number of people traveling by public transportation to 19.04 million.

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  • Garuda Indonesia poised to trim losses with Idul Fitri traffic

    Garuda Indonesia poised to trim losses with Idul Fitri traffic

    After suffering US$89.49 million in losses during the first quarter of the year, PT Garuda Indonesia is poised to see a recovery in the second quarter, especially in the June and July months that encompass the Idul Fitri holiday.

    Garuda Indonesia president director Pahala N. Mansury said the second quarter offered good prospects and the Idul Fitri exodus would help improve the company’s accumulative performance in the first semester.

    In the first quarter of 2016, the state-owned flag carrier booked $74.48 million in profits, but still suffered $63.2 million, or around Rp 824 billion, in losses.

    “Even if the losses have yet to be covered, hopefully we can at least push the losses down,” he said after accepting an award from TripAdvisor as one of the top 10 best airlines in the world on Friday.

    He also denied accusations from Rizal Ramli about the company’s lavish spending and potential corruption in the purchase of an Airbus A350.

    “We don’t have an Airbus A350 and thus the statement is not true,” he said, adding that the company was currently focused on optimizing efficiency.

  • Garuda Indonesia soars above challenges, gears up for growth

    Garuda Indonesia soars above challenges, gears up for growth

    Ready to face their business growth that is riddled with challenges, Garuda Indonesia is optimistic that both its operational and financial performances will experience sustainable and positive growth in the next two years. This will be attributed to their business strategy, which is to focus on financial performance transition.

    Antara News quoted Garuda Indonesia President Director, Pahala N Mansury, saying that the airline would focus on performance improvement by taking 10 financial and business performance initiatives in a manner that would improve both operational and financial conditions.

    The 10 financial performance strategy initiatives are optimising usage of their fleet, lowering fleet cost, improving service related to departure and arrival time as well as reforming the service user income management services. “We are quite optimistic about achieving it in one or two years time,” he said.

    Pahala said the company is currently in a good position in term of operation and services to the public. However, the main challenge the company is facing is to find ways to improve its financial performance in a sustainable way to ensure business continuity.

    “We have identified that the phase of the business cycle that the group is undergoing is temporary. Infrastructure, human resources and products, and all business lines have a good platform to support the performance improvement,” Pahala said.

    He also lauded all sides for their input and attention into improving the group’s performance and business dynamics.

    Meanwhile, state shipping company PT Pelayaran Indonesia (Pelni) has paired up with Patra Jaya, a subsidiary of state-owned energy firm PT Pertamina, to introduce a cruise ship to boost the tourism industry.

    PT Pelni Kupang brand Head Adrian on Sunday said a memorandum of understanding was signed between the two parties, where the MoU entails the construction of a cruise ship to support the nation’s tourism industry in 10 tourists destination.

    The ten tourists destinations include Labuan Bajo and Riung, East Nusa Tenggara. The ship is currently being built in South Korea and is expected to be completed and sailing by 2018.

    Both Pelni and Pertamina had initially planned to purchase a cruise ship but the plan was halted following a regulation banning government agencies to purchase second-hand goods from abroad.

    Pelni currently operates both passenger and transport ships.

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  • Garuda aims to improve financial performance in two years

    Garuda aims to improve financial performance in two years

    Garuda Indonesia is optimistic its operational and financial performance will see sustainable positive growth in one to two years, fueled by business strategy focusing on financial performance transformation.

    “Garuda Indonesia will focus on improving its performance by taking 10 financial and business performance initiatives in such a way that its operational and financial conditions will be better and we are quite optimistic about achieving it in one to two years time,” Garuda Indonesia President Director Pahala N Mansury said here on Sunday.

    In the phase of business growth which is full of challenges, Pahala expressed gratitude to all sides for their attention and inputs to improve the financial performance and business dynamics of Garuda Indonesia.

    “Of course, this is worthy of out praise, particularly when it comes to the commitment and concern of all stakeholders to ensure that Garuda Indonesia as national flag carrier will always have good business performance,” he said.

    He said the company is currently in very good condition in terms of operations and services to the public.

    The challenge that the company must fulfill now is related to how to improve its financial performance in a sustainable way to ensure the continuity of its business, he said.

    “We ascertain that the phase of business cycle that Garuda Indonesia is going through is only temporary now that in terms of infrastructures, human resources and products, all business lines of the company have good platform to support the improvement of its performance,” he said.

    Among the 10 financial performance strategy initiatives are making optimum use of fleet, lowering the costs of fleet, improving services related to punctual departure and arrival time, and reforming the system of managing income from service users.

  • Qatar Airways Umrah Passengers Transferred to Garuda Indonesia

    Qatar Airways Umrah Passengers Transferred to Garuda Indonesia

    Qatar Airways umrah passengers will be transferred to flag carrier Garuda Indonesia. “We have a partnership with Qatar Airways. Some passengers to be carried from Jakarta to Saudi Arabia will be transferred to Garuda Indonesia, it expected to happen in a short term,” Garuda CEO Pahala Mansyuri told us yesterday, June 8. According to Pahala, the opportunity will be exploited by Garuda Indonesia to introduce its highly potential umrah services. The first phase will see the transfer of 45 Qatar Airways passengers in Jakarta-Saudi Arabia route. In the phase, around 150 passengers will be carried in the routes previously operated by Qatar Airways.

    In a written statement issued Wednesday Transportation Minister Budi Karya Sumadi said that he has not revoked Qatar Airways flight license. The government will only transfer Indonesian umrah passengers using Qatar Airways to other airlines.

    Budi said that the transfer will be done in the wake of the diplomatic row between Qatar and some other Gulf countries. The conflict has resulted in a ban on Qatar Airways from flying above Gulf countries, including Saudi Arabia, which is the destination country of hajj and umrah.

    As for flights from and to Indonesia, Qatar Airways may still carry passengers as usual. “Qatar Airways can still serve flights from and to Indonesia and [passengers] may continue the travel to third countries aside from those having diplomatic issues with Qatar,” the minister said.

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  • Garuda to operate large aircraft to serve Lebaran travelers

    Garuda to operate large aircraft to serve Lebaran travelers

    Flag carrier Garuda Indonesia is preparing 61,324 flight seats through the operation of large aircraft for an extra flight in anticipation of an increase in passengers during the post-fasting Eid ul-Fitr or Lebaran 2017.

    President Director of PT Garuda Indonesia Pahala N. Mansury said the Lebaran is a period when flight operations peak, mainly coinciding with school holidays, so that seat capacity this year increased to 87.24 percent.

    “During the increase this year, there are additional seats of around 60 thousand for the Lebaran peak season. One-third of it is from the large aircraft, while the remaining two-thirds include additional frequencies for both domestic and international flights,” Pahala noted here on Saturday (May 27).

    There is also the use of wide-bodied aircraft (bigger aircraft) and extra flights consisting of 50,210 seats to 11,114 seats on domestic routes and international routes.

    Meanwhile, the type of aircraft to be operated are B737-800 (162 passengers), A330-200 (222 passengers), A330-300 (287 passengers), and entire economy class A330-300 (360 passengers).

    Previously, VP Corporate Communications Garuda Indonesia Benny S. Butarbutar remarked at the Lebaran peak season this year that Garuda Indonesia operates a total of 348 additional flights comprising 188 extra flights and 160 flights using large aircraft.

    “The addition of low-capacity Lebaran peak season this year increased by 87.24 percent of the total capacity of extra flights in the same period last year,” Benny stated.

    Homecoming of passengers are expected to take place from June 16 to July 9, 2017, for both domestic and international routes.

    Garuda Indonesia appealed to all service users to plan a trip as early as possible and use the city check-in facility at the sales offices of Garuda Indonesia or in the web check-in and phone check-in to avoid long queues at the check-in booths in the airport.

  • Garuda Indonesia Provides 45,000 Seats during Eid Holiday

    Garuda Indonesia Provides 45,000 Seats during Eid Holiday

    PT Garuda Indonesia provides extra 45,000 seats to serve people for 2017 Eid al-Fitr.

    “This year we offer extra seats to people or consumers who travel before Eid al-Fitr and after the celebration,” PT Garuda Indonesia President Director Pahala N. Mansyuri said in Bali on Saturday (6/5).

    He added that the extra seats offered before and after 2017 Eid al-Fitr increase 39 percent compared to the previous year.

    “We offer the extra seats eight days before and after the celebration starting from 18 June to 3 July 2017,” he added.

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  • International Flight Services Launched in Terminal 3, Soekarno Hatta

    International Flight Services Launched in Terminal 3, Soekarno Hatta

    President & CEO Garuda Indonesia Pahala N Mansury and President & CEO of Angkasa Pura II Muhammad Awaluddin inaugurated Garuda Indonesia international flight operations service at Terminal 3 of Soekarno-Hatta Airport, Tangerang on Monday (1/5) by releasing flight GA 820 route Jakarta – Kuala Lumpur and welcoming the arrival of flight GA 823 route Singapore – Jakarta.

    Flight GA 820 from Jakarta to Kuala Lumpur destination, departed at 08.35 Local Time, while the arrival of flight GA 823 route Singapore – Jakarta landed at 08.15 Local Time. Both direct flights were greeted and released by the President & CEO from Garuda Indonesia and AP II.

    President Director & CEO Garuda Indonesia Pahala N Mansury said the official operation of Garuda Indonesia international flight service at Terminal 3 of Soekarno-Hatta Airport marked the companies ongoing effort to enhance service excellence commitment and increase the convenience of all passengers in enjoying Garuda Indonesia flight service.

    “We would also like to extend our greatest appreciation and gratitude to Angkasa Pura II who successfully provided an international airport service with modern facilities which surely will further support the operational service services that we provide to all passengers.”

    “With the vision of Garuda Indonesia-based Indonesian hospitality service that is also aligned with Angkasa Pura II’s vision of making Soekarno-Hatta the best smart-connected airport in the region, Garuda is optimistic that the presence of this international Terminal 3 service will not only be a concrete step towards the development of competitive infrastructure and transportation services Global, but also a milestone for the development of national tourism aspects in the eyes of the world,” concluded Pahala.

    Meanwhile, President Director of Angkasa Pura II Muhammad Awaluddin expressed “We are grateful for the support of the public, Ministry of Transportation, especially the Directorate General for Air Transportation and other stakeholders at Soekarno-Hatta Airport so that on May 1, 2017, international route flights can be served through Terminal 3 Where this special first stage is operated by Garuda Indonesia,” he explained.

    “AP II is optimistic that the operation of international flights in Terminal 3 can further make Soekarno-Hatta Airport one of the supporters of tourism growth, in addition to the increase of Indonesia’s economy,” said Muhammad Awaluddin.

    On the other hand, Angkasa Pura II completes the operation of international flights in Terminal 3 with facilities supporting parking facilities that can accommodate about 1,200 private vehicles for regular parking. Then as a form of familiarization of the service users towards the building of International Terminal 3 parking, for seven days or starting from 1-7 May 2017 regular parking users will be free of vehicle parking fee.

    As for the parking of the vehicle, Angkasa Pura II also provides 2 parking garage area that is East Inap Parking and West Inap Parking located in the office area in the middle of the airport area where passengers who want to invite the vehicle can make reservations first through the smartphone application “Orangapark Parking” which can be downloaded through Google Play.

    In addition, on 1-7 May 2017 all tenants including food and beverages in the area of Terminal 3 International in cooperation with Angkasa Pura II will be granted an additional 10% discount to all airline passengers or airport visitors, excluding any existing discounts.

    In line with Garuda Indonesia’s international flight service to Terminal 3 of Soekarno-Hatta Airport, Garuda Indonesia is optimistic that it will further strengthen the 5-star service and increase the capacity of pre-light and post-flight services provided to all passengers.

    International flight services in Terminal 3, Garuda Indonesia will further expand the capacity of its pre-post flight service to all users of the service users. At Terminal 3 later, Garuda Indonesia will operate 26 check-in counters as well as a significant increase in executive lounge capacity with an area of 2,100 m2 comprising 350 seats for business class and 56 seats for first class.

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  • Garuda Indonesia Posts USD 9.36mn Profit

    Garuda Indonesia Posts USD 9.36mn Profit

    Flag carrier PT Garuda Indonesia (Persero) posted a net profit of USD 9.36 million, or IDR 124.5 billion, as of the end of 2016, as flight frequency increases by 9.89 percent to 274,969 flights from 249,974 in 2015.

    “The increase in flight frequency was in line with the company’s effort to expand both domestic and international flights,” Garuda Indonesia Vice President of Corporate Communication Benny S. Butarbutar said in a written statement received in Jakarta on Wednesday, April 12, 2017.

    In 2016, the company carried 35 million passengers by both Garuda Indonesia and its subsidiary Citilink Indonesia. Garuda Indonesia Group also recorded increase in ancillary revenue, strategic business unit (SBU) revenue, as well as other sectors at US$392 million or a 13.7 percent increase compared to 2015 at US$344.4 million.

    The press release stated that Garuda Indonesia’s on time performance (OTP) in 2016 was recorded at 89.51 percent, an increase compared to the previous year at 88 percent. The OTP figure was achieved despite challenges in developing aviation operational infrastructures, such as service migration to newly opened Terminal 3 of Soekarno-Hatta Airport and weather-related force majeure.

    The average occupancy rate in 2016 was 73.1 percent for Garuda and 76.8 percent for Citilink. As for air cargo business, Garuda Indonesia managed to improve air cargo transport to 415.824 tons, or an 18.22 percent increase compared to 2015 at 351.724 tons.

    All in all, the total air cargo revenue in 2016 amounted to US$219.15 million or a 16.65 percent increase compared to 2015 at US$187.87 million. In 2016, Garuda Indonesia Group added its flight capacity as part of fleet revitalization by purchasing 17 aircraft, namely four ATR 72-600 aircraft, four A330-300 aircraft, one B777-300ER aircraft and eight A330-200 aircraft. As such, as of the end of 2016, Garuda Indonesia Group operates 196 aircraft with an average age of 4.6 years.

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  • Garuda Indonesia Keeps Expanding Despite 89% Profit Slide

    Garuda Indonesia Keeps Expanding Despite 89% Profit Slide

    Indonesian flag carrier Garuda Indonesia will continue expanding despite a lackluster performance last year during which profit dropped by 89%, President Arif Wibowo said on Wednesday.

    Garuda posted $8.1 million in net income in 2016, from $76.5 million the year before. Wibowo said the decline was “manageable,” and attributed it in part to the company’s increased flights on existing routes and the opening of new ones. Garuda last year started connecting Indonesia’s resort island, Bali, with a few Chinese cities, and commenced flights to Mumbai.

    Its available seat kilometers — a measure of passenger-carrying capacity — last year was up by 13%. Wibowo said he expects a similar increase this year.

    “First half of 2016 was loss-making due to the expansion,” Wibowo said. “But that is part of a growth strategy that I must take. In 2017 we’ll keep maximizing our capacity growth, by 10-12%.”

    To achieve this, Garuda will increase its service to less-connected, underdeveloped eastern Indonesia regions. For international destinations, China will remain a focus, though Garuda is also working on flying to the U.S. and Russia.

    Profit was also dragged down by declining passenger yields — measure of average fare paid per mile — which dropped from 9.6 U.S. cents in 2012 to 6.2 U.S. cents in 2016 industrywide in Asia Pacific.

    Garuda’s low-cost subsidiary, Citilink, was especially hit hard by declining yields. It posted a net loss of $9.7 million last year from a $3.5 million profit it made in 2015, despite an 18% growth in passengers to 11 million.

    Garuda saw its passenger numbers grow just 1.4% in the same period. The group’s market share in the country shrank slightly from 43.5% to 41.7% for domestic flights, and from 27.1% to 26.9% for international ones.

    “It’s very tough competition in the aviation industry over the past five years. Passenger traffic has increased, but there has been tremendous pressure on yields,” Wibowo said.

    He added that the state-owned company is approaching the government to increase lower tariff limits for airlines operating in Indonesia, citing increasing fuel prices, to prevent a price war.

    GMF AeroAsia, which offers maintenance services for aircraft, was the best-performing subsidiary last year with a 60% profit increase to $57.7 million. Wibowo said the consistently good performance makes GMF a candidate for an initial public offering. Garuda is mulling the sale of 20% of GMF share to the public, which may happen this year.

    The airline is also pushing the growth of its cargo business after the establishment of a special division for cargo last year. Director of Cargo Sigit Muhartono said he would focus on expanding e-commerce delivery for the higher yields. Garuda delivered 416 tons of cargo last year, an 18% increase year-on-year.

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  • Garuda Indonesia Travel Fair 2017 Records IDR457 Tln in Transactions

    Garuda Indonesia Travel Fair 2017 Records IDR457 Tln in Transactions

    The first phase of Garuda Indonesia Travel Fair (GATF) 2017 which is held on March 10-12, 2017 in 24 cities generates positive results by achieving a total transaction amounting to IDR457 billion, surpassing the target set at IDR380 billion. The largest revenue contributors come from the city of Jakarta, Lombok and Denpasar.

    VP Corporate Communications of Garuda Indonesia Tbk (GIAA), Benny S Butarbutar, in remarks, Monday (3/13/2017), said successful implementation of the GATF 2017 phase-1 shows public enthusiasm in traveling needs at an affordable price is still very high.

    “In addition, successful implementation of the ninth GATF is certainly not without the support and hard work of all fellow employees of Garuda Indonesia Group. We wished that the implementation of the next 2017 GATF will be more successful,” he added.

    The cities which become favorite destinations for visitors are Singapore, Hong Kong, Tokyo and Seoul for international routes; for domestic destination are Bali, Jogjakarta, Surabaya and Lombok.

    Implementation of GATF in Jakarta this time also showed an increase, reaching 74 thousand visitors, compared to the same period last year of 60 thousand visitors.

    Sporting the theme ‘Digital Experience’, Garuda Indonesia in 2017 GATF Phase 1 introduced LINE ID ‘Official Garuda Indonesia’, which is the only LINE ID for Indonesian airlines at this time.

    “By adding official account of Garuda Indonesia in LINE, users of Garuda Indonesia’s services can enjoy various promotional programs from Garuda Indonesia throughout the year,” he said.