TEMPO.CO, Jakarta - CEO of national flag carrier Garuda Indonesia Irfan Setiaputra said the company is mulling over changes to the airline's business models with shareholders and stakeholders. The management planned to slash the number of fleets to simplify the operation.
“Philosophically, [the operation of] Garuda will be simpler, but profitable and full of service. We realize that the number of aircraft that we serve will decrease,” Irfan said in a virtual press conference on Thursday, August 19.
However, Irfan stopped short of revealing the percentage of the fleet reduction. He previously said the company would reduce the total aircraft by 50 percent.
This was in line with the plan to close a number of less lucrative routes. Garuda is now evaluating the number of flights to be operated considering people's low interest in traveling by plane in the wake of the Covid-19 pandemic.
He gave a signal that scheduled international flights would be slashed. That way, Garuda would focus on flying its airlines on domestic routes and cargo transportation.
“The routes that we are serving will also be reduced because [we receive] mandates to focus on domestic flights and cargo transport,” Irfan said.
Garuda Indonesia's market share for domestic routes in 2020 was only 35.3 percent, declined from the previous year's 43.4 percent. The airline was recorded to have 48 domestic routes and 15 international routes.
FRANCISCA CHRISTY ROSANA