Garuda Indonesia Adjusts its Air Cargo Rates
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7 February 2019 11:01 WIB
TEMPO.CO, Jakarta - State-run carrier Garuda Indonesia attributes the shifting delivery market trend toward e-commerce to its air cargo rate adjustment.
Garuda Indonesia President Director I Gusti Ngurah Askhara Danadiputra on Wednesday said that mid-level business practitioners opted to become regular customers that enable better control for the delivery services that they want.
“This is done to harmonize the logistics business in Indonesia,” said Askhara who acknowledged that the increasing operational costs on running a flight have also affected the company’s decision.
The Garuda Indonesia cargo is the second largest contributor for the company’s earnings following its ticket sales. However, the company asserts that their domestic cargo flight services are much more affordable compared to international rates.
As an illustration, Garuda Indonesia general cargo rate from Seoul to Soekarno Hatta Airport is set at Rp17,029/kilogram/flight hours with a 48 percent lower rate for the other way around (Rp11,500).
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