Foreign airlines eye Garuda's maintenance unit
JAKARTA (JP): National flag carrier Garuda Indonesia is inviting international airlines to jointly operate the Garuda Maintenance Facility (GMF), according to an airline executive.
The airline's vice president for alliance and marketing development Robert D. Waloni said on Thursday that Germany's Lufthansa, Holland's KLM and Singapore Airlines (SIA) had shown an interest in investing in GMF.
"They're interested in investing in GMF, this is a good turn for us as we are looking for a strategic alliance," Waloni told The Jakarta Post after a Garuda press conference for foreign journalists.
He said he had yet to be informed specifically on how much of GMF the three airlines were interested in acquiring or when any deal would be finalized.
Garuda currently cooperates with Lufthansa and KLM through code sharing on several European routes. Lufthansa also serves as a marketing consultant for Garuda for a fee.
Garuda president Robby Djohan has said the airline plans to sell GMF and several aircraft as part of the airline's massive cost-cutting measures.
The airline is also planning to move its headquarters building from the commercial district in Central Jakarta to the Cengkareng airport compound near the GMF management building by the end of this year. It also plans to dismiss 3,000 of its more than 12,000 employees.
Garuda spokesman Pudjobroto said on Thursday the airline might hand over the management of the building to its subsidiary, PT Aerowisata, which manages its hotels.
Since Robby took over two months ago, the airline has undergone extensive management and debt restructuring after suffering massive financial adversity this year due to inflated dollar costs and falling revenues from domestic flights.
State Minister of the Empowerment of State Enterprises, Tanri Abeng said on Monday Garuda booked a Rp 200 billion (US$18.18 million) profit in August as a result of the efficiency programs.
The programs also include restructuring its domestic and international routes.
From Oct. 25 until March 27 1999, the airline will run its winter flight schedule, which will include the temporary closure of some routes, a reduction of flight frequencies, and the operation of only certain aircraft.
It will end its twice-weekly flights to Paris, France, and thrice-weekly flights to Fukuoka, Japan.
It will also cut its flights to Amsterdam to four a week from six, Sydney to five from seven, Melbourne to five from seven and Perth to 10 from 14.
Flights to Europe will only use B747-400 aircraft, to Australia B737-400s, DC100-30s and A330-300s, the Middle East DC10-30s, and Japan A330-300s.
All other flights to Asia will use A330-300, B737-400, and B737-300 aircraft.
Robert said Garuda would only fly the really profitable routes which could generate a positive cash flow.
"Garuda is closing the unprofitable routes, and will only serve these routes by way of charter flights." (das)