Garuda plans to start flights to India<\/p>\n
Vicki Kwong, Bloomberg\/Hong Kong<\/p>\n
PT Garuda Indonesia, the nation's largest airline, plans to start
\nflights to India to tap rising travel to the world's second-most
\npopulous nation and expand overseas routes as it seeks to return
\nto profit.<\/p>\n
The Jakarta-based carrier plans to fly to India, with a stop
\nin Singapore or Kuala Lumpur, President Emirsyah Satar said in
\nHong Kong on Wednesday.<\/p>\n
"We're talking to potential partners in Singapore and Kuala
\nLumpur to operate those flights," he said in an interview. He
\ndeclined to give further details.<\/p>\n
Garuda, which posted its first loss in three years in 2004, is
\nkeen to fly to more destinations outside of Indonesia, where
\ncompetition mounts with PT Lion Mentari Airlines, PT AWAir
\nInternational and other low-fare carriers. The airline, which is
\nseeking a government bailout, said in September it plans to fly
\nto the cities of Mumbai, New Delhi and Calcutta in India where
\npassenger growth is among the highest in Asia.<\/p>\n
Rising incomes in India, Asia's fourth-biggest economy, are
\nencouraging more people to travel abroad. The nation's passenger
\ntraffic is forecast to grow 8.4 percent each year until 2009,
\nfaster than a global average of 6.7 percent, according to the
\nInternational Air Transport Association of 265 carriers.<\/p>\n
Singapore-based discount carrier Jetstar Asia, which has
\ncombined with low-fare airline Valuair Ltd. also based in the
\ncity state, started flights to southern India's Bangalore last
\nmonth, the first overseas low-cost airline to fly to the south
\nAsian city. Tiger Airways Pte, the discount unit of Singapore
\nAirlines Ltd., plans to fly to Calcutta in January next year.<\/p>\n
State-owned Garuda is in talks with potential partners to
\nrestructure its Citilink unit, Emirsyah said. Citilink, which
\nflies to nine domestic destinations, will continue to offer low
\nfares to compete with discount carriers so that Garuda can focus
\non serving the premium market, he said.<\/p>\n
"We hope we can finalize this sometime next year," he said,
\nwithout giving details on the potential partners.<\/p>\n
Garuda, whose board was sacked by the government in March to
\nimprove the carrier's performance, now flies to 21 cities in
\nIndonesia and 22 overseas destinations including London, Sydney
\nand Tokyo. The airline operates 51 Boeing Co. planes and six
\nAirbus SAS aircraft.<\/p>\n
The carrier will lease 10 Boeing 787-8 planes and 18 737- 800s
\nto expand and modernize the fleet, it said on Sept. 16. The 223-
\nseat 787-8 will be delivered to Garuda from 2011. The airline
\nwill begin operating the 737-800, which can carry 162 people in a
\ntwo-class configuration, early next year.<\/p>",
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