Garuda to divest from subsidiaries<\/p>\n
JAKARTA (JP): National flag carrier Garuda Indonesia plans to
\ndivest from all of its subsidiaries in order to focus on its air
\ntransportation business, the airline's new boss said here
\nyesterday.<\/p>\n
Robby Djohan, Garuda's new president, said the ailing airline
\nwas prepared to do anything it had to to lift itself out of its
\nfinancial troubles.<\/p>\n
\"Garuda will be a company which provides transportation
\nservices and ticket sales only,\" Robby told journalists after a
\nhearing with the House of Representatives Commission IV for
\npublic works, transportation, communications and public housing.<\/p>\n
He said subsidiary services such as ground handling and
\ncatering would be \"better off handled by somebody else\".<\/p>\n
Robby, appointed president Monday, said some of the
\nsubsidiaries were not profiting Garuda and that there was no
\nreason to keep them.<\/p>\n
The investment and time spent to manage the firms do not match
\nup with their future prospects, he said.<\/p>\n
Garuda has two subsidiaries: the diversified Aerowisata and
\nticketing system operator Abacus.<\/p>\n
Aerowisata has its own subsidiaries: Aerowisata Catering
\nService, Satriavi Tour and Travel and Mandira Jasa Wahana, a
\ncompany which provides group transportation services.<\/p>\n
Garuda has also established a joint-venture company, Gapura,
\nwith state-owned airport operators Angkasa Pura I and Angkasa
\nPura II to diversify into ground-handling services. The joint
\nventure, however, has not started operating.<\/p>\n
Garuda has numerous partnerships with private companies as
\nwell.<\/p>\n
Robby said he would cleanse Garuda's partnerships from graft
\nto restore the airline's tarnished image.<\/p>\n
Last week, over 2,000 employees of the airline staged a
\nprotest outside of its headquarter here, demanding then president
\nSoepandi to step down and an end the company's practices of
\ncorruption, collusion and nepotism.<\/p>\n
The protest led to Soepandi's resignation and a promise to
\nstop cooperation with private companies linked to ex-president
\nSoeharto's family, including cargo handler PT Angkasa Bina
\nWisesa, PT Bimantara Graha Insurance and PT Ototrans.<\/p>\n
Robby said Garuda was not planning to further reduce its
\nfleet. Instead, the airline will restructure both its
\ninternational and domestic flight routes.<\/p>\n
International flights from Asia or America, for example, could
\nstop in Bali as their final destination. Passengers wishing to
\ncontinue to other cities could then be carried by smaller
\naircraft, he said.<\/p>\n
Garuda currently has 57 aircraft but plans to return six of
\nthem to foreign lessors due to declining passenger loads and
\nincreasing maintenance costs. (das)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/garuda-to-divest-from-subsidiaries-1447893297",
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