Garuda Indonesia to Close 97 Flight Routes

TEMPO.CO, Jakarta - Flag carrier Garuda Indonesia planned to close a number of flight routes from 237 to only 140 routes. The airline management has mapped out routes to less-lucrative destinations, such as Tarakan.

“So far, we have been pressured [to open more routes] that do not bring a profit. So we ask for support if we say no [to the opening of new routes]. We're sorry,” said Garuda President Director Irfan Setiaputra at a hearing with the Commission VI of the House of Representatives (DPR) today, November 9.

He explained that the company suffered losses since the operation of a number of airlines did not boost revenue. The revenue did not commensurate with the operating costs incurred.

In addition, airlines must operate fleets that did not match the company's characteristics, which increased the production costs, such as Bombardier CRJ and ATR.

Garuda also planned to reduce flights to international routes. In early 2020, the company closed routes to Amsterdam, London, and Nagoya.

In line with the route reduction, the company minimized the flight frequency to certain routes, including Jakarta-Yogyakarta. “There is only a morning flight to Yogyakarta,” Irfan added.

Route efficiency and frequency cuts were one of Garuda Indonesia's business plans in its restructuring proposal as it incurred losses of up to US$9.8 billion or almost Rp140 trillion and is negotiating with 32 lessors to lower its operating expenses. Irfan said the restructuring process will take about 270 days and during that time, he said Garuda must book a profit.

Read: Garuda Indonesia to Reduce Flight Routes, Says SOE Deputy Minister

FRANCISCA CHRISTY ROSANA