…
Indonesia’s national airline, Garuda Indonesia, ended the year 2011 by booking an (audited) income of IDR 27,2 trillion, which was a rise by 39,1 percent compared to the IDR 19,5 trillion booked in the previous year. Garuda Indonesia also managed to book an operating income of IDR 1,01 trillion, an increase from a previous loss of IDR (67,2) billion. Garuda also managed to book a net profit IDR 808,7, as well as a comprehensive income of IDR 858,8 billion – an increase of 285,46 percent compared to the previous year, 2010. The revenue increase was generated by the expansion of the company’s operations through the “Quantum Leap” program, and thanks to efficiency program and effective utilization of resource/aircraft.
In 2011, Garuda Indonesia successfully transported 17.1 million passengers that consisted of 13,9 million domestic passengers and 3,2 million international passengers, which was increase of 36,2 percent compared to 12,5 million passengers in 2010. Production capacity (availability seat kilometer/ASK) in 2011 also increased by 26 percent, from 25.8 billion in 2010 to 32.5 billion. In the case of passenger “yield”, numbers rose by 12,4 percent, reaching USC 9.6 as opposed to 2010’s USC 8,6. Garuda also carried 229 thousand tons of cargo, an increase of 10,8 percent from the total of 207 thousand tons of cargo carried in 2010.
In 2011, Garuda Indonesia domestic and international flight frequencies also experienced an increase by 26,6 percent, from 102.724 flights in 2010 to 130.043 flights, consisting of 108.381 domestic flights and 21.662 international flights.
Garuda Indonesia’s Seat Load Factor/SLF also rose by 4,3 percent, reaching 75,2 percent from 71,7 percent in 2010. Aircraft utilization increased from 9:23 hours in 2010 to 10:40 hours in 2011. On Time Performance (OTP) rose 6,9 percent to 85,68 percent, compared to the 80,16 percent in the previous year.
During the 2011 period, Garuda Indonesia also managed to expand its market share in the domestic sector by 28,6 percent, compared to the 24,5 percent experienced in the same period in the previous year. In 2011, the market in domestic airline passengers grew by 16,2 percent, but Garuda Indonesia’s passengers increased significantly as much as 37,9 percent, much higher that that experienced by other airlines which only reached an average of 9,4 percent. Meanwhile, international passengers grew by 12,4 percent, in which Garuda Indonesia’s increased by 29,2 percent over that of other airlines which only reached 8,2 percent.
In connection with the airline’s ongoing fleet development and expansion, Garuda Indonesia –in 2011– welcomed 14 new aircrafts, comprising two A330-200s nine B737-800 Next Generations, and three A320 for Citilink, making the total number of aircraft in operation in 2011 was 87, aged on average 6,5 years.
In May 2011 Garuda officially established Makassar as its third “Hub” after Jakarta and Denpasar. As a hub, Makassar connects fifteen cities in Sulawesi, Maluku, Papua and Singapore. Garuda also opened seven new routes throughout 2011, namely Makassar – Gorontalo, Surabaya – Ambon, Makassar – Balikpapan, Makassar – Singapore, Makassar – Ternate, Surabaya – Balikpapan, and Balikpapan – Yogyakarta.
Moreover, throughout 2011, Garuda Indonesia further improved its services by adding more flight frequencies to various domestic and international destinations. On routes such as Jakarta – Shanghai, Jakarta – Seoul, Denpasar – Seoul, and Jakarta – Sydney, flights were added from 5 times to 7 times a week.
Garuda Indonesia’s successful business transformation has resulted in a number of improvements and its positive progress has been acknowledged both at national and international levels. Throughout 2011 Garuda Indonesia was the recipient of a number of prestigious awards, namely “Perusahaan Idaman, Top Brand Award, Indonesia Best Brand Award, Annual Report Award (from the Capital Market Supervisory Agency (Bapepam-LK), IDX, Ministry of State-Owned Enerprise, KNKG, IAI, and the Director General of Tax of the Ministry of Finance RI), as well as Good Corporate Governance (GCG) Awards (from SWA and IICG). In the beginning of 2012, Garuda Indonesia also won the “Asiamoney Corporate Governance Poll 2011” award from Asiamoney and “The Most Admired Companies” award from Fortune.
Garuda Indonesia also won the “Best International Airline” by Roy Morgan, an independent research institute based in Australia.
Corporate Actions 2012
Continuing with its fleet expansion program, on February 15, 2012, Garuda signed an agreement with Bombardier Aerospace, an aircraft manufacturing company from Canada, for the procurement of eighteen CRJ 1000 NextGen type aircraft. Five of the eighteen Bombardier CRJ1000 NextGen series are expected to arrive between October and December 2012.
In addition to five aircraft from Bombardier, in 2012, Garuda Indonesia will also welcome four B737-800NGs, two A330-200s, ten A320s dedicated to Citilink, which in total will be as many as twenty-one aircraft. Of these twenty-one new fleet additions, Garuda has to date received one B737-800NG and one A330-200 in February. With the arrival of these new aircraft, in 2012 Garuda’s fleet will be a total of 105 airplanes with an average of 5,8 years old. Through the “Quantum Leap” program, Garuda Indonesia will operate as many as 154 aircraft by 2015.
The Bombardier CRJ1000NextGen aircraft will serve Garuda Indonesia’s domestic and regional routes, flying out of its hubs in Makassar, Medan and Balikpapan at the end of 2012.
Expanding its domestic network, on February 9, 2012, Garuda introduced services from Bandung – Surabaya. Throughout 2012 Garuda will continue to establish new routes flying out of its hubs, such as Medan hub with flights to Medan – Penang, Medan – Batam, Medan – Palembang, Medan – Palembang – Pekanbaru, and Medan – Surabaya. From its Denpasar hub, Garuda will introduce flight service from Denpasar – Balikpapan. After introducing the Balikpapan – Jogjakarta service from its Balikpapan hub, Garuda plans to commence services from Balikpapan to Denpasar, and some other new routes including Makassar hub route expansions.
Meanwhile, in line with a growing international market, Garuda plans to open a new route from Denpasar to Haneda (Tokyo) as of April 27, 2012 and commence services from Jakarta to Taipei on May 24, 2012.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
