Garuda undertakes massive restructuring<\/p>\n
JAKARTA (JP): Director General for State Enterprises Bacelius
\nRuru said yesterday that the national flag carrier, Garuda
\nIndonesia, is conducting a massive restructuring program to
\nimprove its efficiency.<\/p>\n
He said that the scheme is part of the airline's preparations
\nto go public.<\/p>\n
Garuda and a number of state-owned companies, including Bank
\nNegara Indonesia (BNI), PT Krakatau Steel and subsidiaries of
\nelectricity company PLN are now being prepared for public
\nofferings, both on domestic and international stock exchanges.<\/p>\n
Ruru said that the performance of the national flag carrier
\nshould be absolutely \"right\" before it launches its public
\noffering.<\/p>\n
Garuda announced yesterday that the restructuring is now
\nunderway to improve efficiency in all parts of its activities.<\/p>\n
A number of unimportant positions in the airline's
\norganization have been eliminated not only to reduce the
\noperational costs but also to speed up the decision-making
\nprocess.<\/p>\n
The airline said in a statement that at least 38 positions in
\nthe middle management level have been eliminated to cut
\nbureaucratic delays.<\/p>\n
\"The middle management has been reduced to 38 posts from 72
\npreviously,\" the statement said.<\/p>\n
Ruru said yesterday that the present management is not allowed
\nto raise the salaries of the airline's employees as part of its
\nconsolidation measure.<\/p>\n
Garuda Indonesia employs 14,313 people and operates 19
\ndomestic and 35 international routes.(rid\/hen)<\/p>",
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