Farsighted approach sought

When the government decided to put (the state-run) Merpati Nusantara Airlines under the wings of (the national carrier) Garuda Indonesia, it thought the measure would produce an integrated enterprise whose two elements would be mutually complementing and which would be more effective and profitable. The arrival of an era of greater competition among airlines, however, proved that the step rather increased the difficulties which both the airlines had to cope with.

To improve the position of both companies in this current era of open competition, the government is now taking steps to separate Merpati from Garuda once again. The plan came closer to being realized when Minister of Finance Mar'ie Muhammad on June 11th gave his formal approval to Merpati's separation from Garuda.

We hope the step will produce a Garuda with a new appearance: not as a big and overweight company that moves with difficulty, but a lean and vigorous one. Indonesia belongs to the Association of Southeast Asian Nations region, which in economic terms is growing rapidly. Here we can watch how our neighbors are moving quickly to anticipate the growth of the regional air services market. We hope that in the future, both Garuda and Merpati will be able to not just take a defensive position against the onslaught of foreign and domestic airline companies, but also better anticipate the growing market opportunities in this region.

-- Bisnis Indonesia, Jakarta