Garuda CEO Aims to Set Reasonable Airlines Tariff

TEMPO.CO, Jakarta - Flag carrier Garuda Indonesia President Director Irfan Setiaputra pledged that he would evaluate several corporate policies, especially with regards to the airlines tariff.

Irfan said the state-owned firm would recalculate the production cost. “We must reckon [the cost] until we find a reasonable one,” said the newly-appointed CEO on Wednesday, January 22.

According to Irfan, setting a not-so-high airfare is possible for the company. However, they would not adjust the price too low as well due to a variety of considerations.

Irfan was concerned that unreasonably low tariff might force operators to give up several services and set aside safety aspects. Besides, it would threaten the business’ sustainability.

Therefore, Irfan ensured the company with a codeshare of GIAA would adjust the airfare based on its production needs.

Moreover, the president director determined to expand non-aeronautical funding sources, such as by stepping up cargo and advertisement business, as well as establishing tourism partnerships.

“Garuda wants to be the spearhead of Indonesian tourism," Irfan underlined.

Those steps were expected to improve Garuda Indonesia’s finance sans increasing the airlines tariff significantly. “So the company will gain profit, reduce installments, and become sustainable. Of course, we do not expect Garuda to be continuously injected with funding," Irfan noted.

FRANCISCA CHRISTY ROSANA