Garuda plans alliance with foreign airlines<\/p>\n
JAKARTA (JP): National airline Garuda Indonesia plans to set
\nup operations with several Asian and European airlines, Garuda
\npresident Soepandi said yesterday.<\/p>\n
\"We have received a direction from the Ministry of Finance
\nthat we may ally airlines from Europe or Asia,\" he said after
\nlaunching a social mission run by Garuda pilots.<\/p>\n
He said Garuda might initially set up an alliance with a
\nforeign carrier for marketing or aircraft maintenance.<\/p>\n
\"We haven't discussed foreign equity participation,\" he said<\/p>\n
Garuda was recently reported to have offered up to 25 percent
\nof its shares to foreign airlines. Among those interested were
\nKLM of the Netherlands, British Airways of Britain and Lufthansa
\nof Germany.<\/p>\n
\"The foreign partner must be strong, bona fide and have good
\nfinancial capability,\" Soepandi said.<\/p>\n
Garuda plans to focus on its core aviation business to
\nstrengthen its capital structure and prepare for public listing
\nin 1998.<\/p>\n
Garuda expects to make a Rp 154.72 billion ($65.5 million)
\nprofit this year.<\/p>\n
To restructure its finance, Garuda plans to sell its hotel
\nsubsidiary Aerowisata, which manages nine hotels in major tourist
\ndestination areas and runs catering and transportation services.<\/p>\n
Hutomo Mandala Putra, Sudwikatmono and Arifin Panigoro are
\namong those interested in buying Aerowista hotels in Bandung
\n(West Java), Lombok (West Nusa Tenggara) and Sanur (Bali). The
\nthree hotels are owned by Garuda.<\/p>\n
The minister of transportation told The Jakarta Post recently
\nthat Garuda planned to sell up to 70 percent of its shares in
\nAerowisata to a state-owned airport operator, PT Angkasa Pura II.<\/p>\n
Soepandi refused to comment on the reported low morale of
\nAerowisata staff.<\/p>\n
Sources at Aerowisata said several employees had been told to
\nstay home next Monday. (icn)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/garuda-plans-alliance-with-foreign-airlines-1447893297",
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