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Garuda Reduces Flights
President Director of Garuda Indonesia M. Arief Wibowo. TEMPO/Marifka Wahyu Hidayat
Tuesday, 30 December, 2014 | 08:14 WIB
Garuda Reduces Flights

TEMPO.CO, Tangerang - State airliner Garuda Indonesia plans to continue to consolidate its flights for efficiency reasons. Garuda president director Arief Wibowo said the company will revamp its national and international travel route, one of them is the route to Japan.

"We will cut flights that are less effective," Arief said in a press conference in Tangerang, yesterday.

According to Arief, starting January next year Garuda will cut the frequency of flights to Japan from twice a day to once a day, from Jakarta and Bali to Japan's Haneda Airport. Garuda also decided to postpone its plan to fly to Nagoya.  

"Flights to Brisbane, Hong Kong, and Cantonese will also experience adjustment," Arief said, and added the company will also reduce the quota of business class seats beginning in January 2015.

In the third quarter of 2014, Garuda recorded a net loss of US$219 million, a year-on-year (YOY) increase from US$14.7 million, even though the period's YOY revenue was up to US$2.81 billion from US$2.68 billion.

The loss was due to fluctuations in jet fuel prices in the first half of 2014, the rupiah depreciation against the US dollar, and the slowdown of the airline business in line with the sluggish global economy.


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