LCC Erodes Garuda Indonesia Domestic Market Share in 2020

TEMPO.CO, Jakarta - National flag carrier Garuda Indonesia recorded 35.3 percent domestic market share in the pandemic-stricken 2020. This is a significant drop compared to the previous year of 43.4 percent market share.

The drop was mainly due to the popularity of low cost carriers, which is confirmed by Garuda Indonesia president director Irfan Setiaputra in an online press conference on August 19, “We indeed witnessed a market share rise of low cost carriers throughout 2020.”

Garuda, as a full service air carrier, competes in its main premium market. The company saw a steep 66.1 percent dive year-in-year in 2020. Garuda's passengers of businesspersons profile decreased to 22 percent from 29 percent, but passengers with government backgrounds increased to 21 percent in 2020.

The available seat kilometers (ASK) of Garuda, known as available seat miles, also saw a 51.5 percent drop. The ASK is a measure of passenger carrying capacity and is equal to the number of seats available multiplied by the number of miles or kilometers flown.

“Garuda has increased its ASK after being permitted to operate again in 2020’s third quarter,” said the president director. 

Due to the disastrous year for tourism globally, Garuda Indonesia also saw passengers aboard leisure destinations drop 19 percent from 30 percent in 2019. 

Read: Garuda Indonesia to Reduce Aircraft, Flight Routes

FRANCISCA CHRISTY ROSANA