Twitter
Advertisement

Garuda to fly daily to India, add route to Bali

Indonesian national carrier Garuda, which started services connecting Jakarta with Mumbai last month, hopes to increase the frequency on this sector in near future apart from adding a new route to Bali.

Latest News
article-main
Garuda Indonesia
FacebookTwitterWhatsappLinkedin

Indonesian national carrier Garuda, which started services connecting Jakarta with Mumbai last month, hopes to increase the frequency on this sector in near future apart from adding a new route to Bali.

The airline is also in talks with India's Jet Airways for expanding their code-share agreement to the new sectors which will help them in offering better connectivity.

The possible reason for Garuda for starting the Mumbai-Jakarta sector could be the fact that of the total around 3.5 lakh passengers which flew to/from Indonesia last year, around one-third came from India's financial capital, a figure which is hard to ignore, claim the industry insiders.

In the absence of a non-stop flight so far, Indian passengers had no option but to use Bangkok, Kuala Lumpur or Singapore as transit for reaching Indonesia.

"Based on the response, we have plans to make the flight daily in future. Also, we want to expand our code-sharing partnership with Jet Airways on other routes. Talks are on in that regard" said M Arif Wibowo, president and CEO of Garuda Indonesia, during an interaction with DNA Money on the sides of an inaugural launch of the Jakarta-Mumbai flight last month.

The airline currently operates flights thrice a week - on Mondays, Wednesdays, and Fridays.

The launch coincided with the two-day visit of Indonesian President Joko Widodo to India at the invitation of PM Narendra Modi.

As per the records available with Ministry of External Affairs (MoEA), Indonesia is India's largest direct trade partner in the ASEAN region (about $16 billion two-way trade). The country is also a major target for outward investment, which stands at about $15 billion.

As per a report released in October by global aviation consultancy firm CAPA, Garuda Indonesia has planned further expansion which was to be undertaken in Q4 of 2016 and first quarter 2017, despite a recent lacklustre performance in the international market.

The airline's international load factor was only 70% through the first eight months of 2016 as it struggled to fill additional seats generated by an 18% increase in ASKs (available seat kilometres).

International yields have also declined as Garuda swung back into the red in the first half of 2016.

"The long haul network has particularly struggled, driving the drop in profitability. However, Garuda is keen to continue strategic expansion" the report says.

Find your daily dose of news & explainers in your WhatsApp. Stay updated, Stay informed-  Follow DNA on WhatsApp.
Advertisement

Live tv

Advertisement
Advertisement