Garuda cuts domestic, international flights<\/p>\n
JAKARTA (JP): State-owned airline Garuda Indonesia has cut the
\nfrequency of its domestic and international flights 26 percent
\nand 30 percent respectively as a response to lower ticket sales
\ndue to the economic crisis.<\/p>\n
Garuda spokesman Pujo Broto said yesterday the airline had
\nreduced its domestic flights to 28 from 38 daily and its
\ninternational flights to 28 from 40 a week.<\/p>\n
The reductions started last month.<\/p>\n
"The retrenchment was made to cope with the sharp drop in
\npassengers in both domestic and international routes," he told
\nThe Jakarta Post.<\/p>\n
He said the affected domestic routes included flights from
\nJakarta to Yogyakarta, Solo, Semarang, Surabaya, Palembang and
\nJayapura in Irian Jaya.<\/p>\n
The airline has reduced the frequency of its flights between
\nJakarta and Yogyakarta from seven to six a day, Jakarta and Solo
\nfrom four to three per day, Jakarta and Semarang from four to
\nthree per day, Jakarta and Surabaya from 14 to eight per day,
\nJakarta and Palembang, South Sumatra, from three to twice a day
\nand Jakarta and Jayapura from seven to four a day.<\/p>\n
"The temporary cutback will be in effect from Feb. 16 to March
\n28," Pujo said, adding that Garuda would make further adjustments
\nto its flight frequencies based on future market conditions.<\/p>\n
The measure also has affected international routes, including
\nflights between Jakarta and Seoul, Jakarta and Hong Kong, Jakarta
\nand Singapore and Jakarta and Taipei.<\/p>\n
Pujo said Garuda reduced the flight frequency on the Jakarta-
\nHong Kong route from seven to four a week, while the Jakarta-
\nTaipei route was reduced from five to three a week and the
\nJakarta-Singapore route from 28 to 21 a week.<\/p>\n
"The cut in international flights will be in effect for a
\nmonth until March 28," he said.<\/p>\n
Garuda even temporarily halted all flights linking Jakarta and
\nSeoul, South Korea, from January.<\/p>\n
"Garuda will serve that route again when the market recovers,"
\nPujo said without giving further details.<\/p>\n
He said Garuda had not cut any flights from Jakarta to
\nEuropean countries as demand from the continent remained bullish.<\/p>\n
The secretary-general of the Indonesian National Air Carriers
\nAssociation (INACA), Benny Rungkat, said the country's airlines
\nwould likely collapse by April this year if the government did
\nnot intervene and help them face the crippling effects of the
\nmonetary crisis.<\/p>\n
"The conditions now are very difficult ... the government must
\nintervene soon," Antara quoted him as saying.<\/p>\n
He said most Indonesian airlines needed a stable rupiah
\nexchange rate and to have their debts rescheduled.<\/p>\n
The Indonesian rupiah was trading at 8,900 against the U.S.
\ndollar yesterday, having lost about 70 percent of its value from
\n2,450 against the dollar last July.<\/p>\n
He said the rupiah's devaluation against the American
\ngreenback had swollen government and corporate foreign debt
\nlevels, including those of airlines.<\/p>\n
Benny said most Indonesian airlines were also having
\ndifficulty meeting their aircraft leasing obligations which
\ntotaled an estimated US$35 million per month for about 70 planes.<\/p>\n
He said Garuda Indonesia and private airlines like Sempati and
\nBouraq had already begun laying off workers.<\/p>\n
Benny said the association was also calling on the government
\nto mediate with lessors and arrange for a grace period or a "soft
\nmoratorium" on debt payments until the rupiah stabilized. (aly)<\/p>",
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