Garuda to cut operating costs<\/p>\n
JAKARTA (JP): State-owned airline Garuda Indonesia is planning
\nto cut its operating costs by 20 percent this year.<\/p>\n
Garuda finance director Achmad Subianto said Thursday the cuts
\nwould affect accommodation, catering and transportation for
\ncrews.<\/p>\n
Garuda expects to gain Rp 4.8 trillion in revenue and at least
\nRp 300 billion in profit this year.<\/p>\n
Garuda president Soepandi said his company lost Rp 87.44
\nbillion last year from operations, down from a Rp 342.79 billion
\nloss in 1995.<\/p>\n
Soepandi said that, if proceeds from the sale of assets of Rp
\n212.09 billion were included, Garuda had booked a Rp 124.65
\nbillion profit.<\/p>\n
\"We sold our assets like spare parts for DC-9 and F-28
\naircraft which are not used by Garuda anymore,\" he said. He
\nrefused to give more details on asset sales.<\/p>\n
He said Garuda had suffered losses in 1995 and 1996 because of
\nrising fuel prices and an increasing number of jet overhauls.
\nReports on cholera in Bali in late 1995 caused passenger traffic
\nfrom Japan to drop 30 percent last year.<\/p>\n
Subianto said that Garuda planned to sell several of its
\nhotels.<\/p>\n
\"We will sell the hotels in Lombok, Sanur (Bali) and Bandung
\n(West Java). We have short-listed 35 firms from about 50
\ncompanies which have proposed to buy the hotels,\" he said, adding
\nthat Garuda would hold an open tender in February or March to
\nselect buyers.<\/p>\n
The three hotels are managed by its hotel subsidiary, PT
\nAerowisata, which also has catering and transportation services.<\/p>\n
New service<\/p>\n
Soepandi said that Garuda began a new service yesterday to
\nlink Jakarta and Amman, Jordan, as part of its expansion program.<\/p>\n
\"The twice-weekly flights will use MD-11 jets as the part of
\nthe service to London,\" he said.<\/p>\n
The new route, Denpasar-Jakarta-Bangkok-Amman-London, departs
\nevery Friday and Sunday.<\/p>\n
Garuda decided to launch the service to capture the rising
\nnumber of people traveling to the Middle East, especially those
\non pilgrimage to Jerusalem.<\/p>\n
Garuda serves three other cities in the Middle East: Riyadh
\n(thrice weekly), Jeddah (thrice weekly) and Dahran (weekly).<\/p>\n
For Middle East destinations, Garuda competes with Gulf Air
\n(United Arab Emirates) operating B-767-300s, Emirates Air (United
\nArab Emirates) operating A-300s and Kuwait Airways (Kuwait)
\noperating A-310s. (icn)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/garuda-to-cut-operating-costs-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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