Garuda cuts domestic, international flights

Garuda cuts domestic, international flights

JAKARTA (JP): State-owned airline Garuda Indonesia has cut the
frequency of its domestic and international flights 26 percent
and 30 percent respectively as a response to lower ticket sales
due to the economic crisis.

Garuda spokesman Pujo Broto said yesterday the airline had
reduced its domestic flights to 28 from 38 daily and its
international flights to 28 from 40 a week.

The reductions started last month.

"The retrenchment was made to cope with the sharp drop in
passengers in both domestic and international routes," he told
The Jakarta Post.

He said the affected domestic routes included flights from
Jakarta to Yogyakarta, Solo, Semarang, Surabaya, Palembang and
Jayapura in Irian Jaya.

The airline has reduced the frequency of its flights between
Jakarta and Yogyakarta from seven to six a day, Jakarta and Solo
from four to three per day, Jakarta and Semarang from four to
three per day, Jakarta and Surabaya from 14 to eight per day,
Jakarta and Palembang, South Sumatra, from three to twice a day
and Jakarta and Jayapura from seven to four a day.

"The temporary cutback will be in effect from Feb. 16 to March
28," Pujo said, adding that Garuda would make further adjustments
to its flight frequencies based on future market conditions.

The measure also has affected international routes, including
flights between Jakarta and Seoul, Jakarta and Hong Kong, Jakarta
and Singapore and Jakarta and Taipei.

Pujo said Garuda reduced the flight frequency on the Jakarta-
Hong Kong route from seven to four a week, while the Jakarta-
Taipei route was reduced from five to three a week and the
Jakarta-Singapore route from 28 to 21 a week.

"The cut in international flights will be in effect for a
month until March 28," he said.

Garuda even temporarily halted all flights linking Jakarta and
Seoul, South Korea, from January.

"Garuda will serve that route again when the market recovers,"
Pujo said without giving further details.

He said Garuda had not cut any flights from Jakarta to
European countries as demand from the continent remained bullish.

The secretary-general of the Indonesian National Air Carriers
Association (INACA), Benny Rungkat, said the country's airlines
would likely collapse by April this year if the government did
not intervene and help them face the crippling effects of the
monetary crisis.

"The conditions now are very difficult ... the government must
intervene soon," Antara quoted him as saying.

He said most Indonesian airlines needed a stable rupiah
exchange rate and to have their debts rescheduled.

The Indonesian rupiah was trading at 8,900 against the U.S.
dollar yesterday, having lost about 70 percent of its value from
2,450 against the dollar last July.

He said the rupiah's devaluation against the American
greenback had swollen government and corporate foreign debt
levels, including those of airlines.

Benny said most Indonesian airlines were also having
difficulty meeting their aircraft leasing obligations which
totaled an estimated US$35 million per month for about 70 planes.

He said Garuda Indonesia and private airlines like Sempati and
Bouraq had already begun laying off workers.

Benny said the association was also calling on the government
to mediate with lessors and arrange for a grace period or a "soft
moratorium" on debt payments until the rupiah stabilized. (aly)