JAKARTA (TheInsiderStories) - Indonesia’s flag carrier, PT Garuda Indonesia Tbk (IDX: GIAA), together with its subsidiary PT Citilink Indonesia, is targeting to increase its domestic market share to 50 percent in 2016 from 40 percent last year in term of total passengers who are using its aircrafts.
“Last year, the combined domestic market share of both Garuda and Citilink stood at 40 percent and this year, we are targeting to raise our market shares to 50 percent,” Garuda’s President Director Arif Wibowo told The Insider Stories.
To reached the target, Garuda as a group plans to add 25 new aircraft to strengthen its fleets—mostly white body-and expanding its flight routes both domestic and abroad. With these plans, Arif said, Garuda and Citilink could bring 42.5 million passengers. Of this total passengers, 15 million used Citilink, up from 10 million last year.
The airlines, he added, plan to expand the domestic and international routes, including from Balikpapan, Makasar and Medan to Middle East countries. Garuda also eyes to raise its market share in the Indonesia-China routes and other countries, taking advantage of projected increase of tourists from China.
Another major step was Garuda’s move to switch its London operation from Gatwick to Heathrow Airport this summer and at the same time introducing its first and only non-stop flight between the UK and Indonesia. The move follows the acquisition of a suitable pair of slots at the heavily congested hub airport after six years of trying.
Currently, airline serves the Jakarta-London Gatwick route three times a week, which acts as a continuation of flights from the Indonesian capital to Amsterdam. Garuda will increase the flight frequency to a five times per week when the move to Heathrow takes place from March 31, 2016, as it draws on SkyTeam alliance transfer flows via the hub airport to bring additional passenger flows onto the city pair.
The move to Heathrow is part of Garuda Indonesia’s strategy to strengthen its presence in Europe and meet its commitment as the national flag carrier, to connect Indonesia to the world. The route will be flown using a Boeing 777-300ER configured in a three-class arrangement.
As a part of its fleet revitalization program along with its service enhancement program as a “5-Star Airline”, Garuda Indonesia, on Feb. 1 presented its new aircraft Airbus A330-300 with its “Super Diamond Seat Business Class” and the 10th Boeing 777-300ER.
The Airbus A330-300 with its Super Diamond Seat Business Class, registered PK-GPZ, is the first out of four Airbus A330-300 that will be delivered in 2016, while the PK-GIK Boeing 777-300ER is the last delivery of the ten B777-300ERs that were ordered by Garuda in 2013.
“The arrival of these new aircraft is a part of Garuda’s commitment to present a modernized fleet with the best service, in line with its business network expansion program in Asia Pacific, Middle East and Europe region,” Arif said.
The Airbus A330-300 enjoys a maximum range of up to 15,000 kilometers or equal to approximately a 12-hour non-stop flight. The capacity is 287 seats consisting of 24 business class with “Super Diamond Seat” and 263 economy class seats.
Meanwhile, the 10th Boeing 777-300ER delivered to Garuda Indonesia, and registered as PK-GIK, is configured with 393 seats capacity, consisting of 26 business class seats and 367 economy class. Six out of ten Boeing 777-300ERs operated by Garuda Indonesia are equipped with First Class service, with 8 First Class seats, 38 Business Class seats and 268 Economy Class seats configuration.
As part of the fleet revitalization program, throughout 2016, the Garuda Indonesia Group will receive 16 new aircraft in total; 1 Boeing 777-300ER, 4 Airbus A330-300, 4 ATR72-600, and also 8 Airbus A320 to be operated by Citilink. By the end of 2016, Garuda Indonesia Group will operate a total of 188 aircraft; 144 aircraft for Garuda Indonesia and 44 aircraft for Citilink.
With all the expansion plans, Garuda expects its business to grow faster than last year. In 2015, Arif said, the company’s revenues grew at single digit compared to losses of US$371.97 million recorded in previous year.
“With the decline of aviation fuel, we are able to expand our routes despite difficult economic condition. We think a growth of 5-6 percent will be achievable,” he added. (*)