Garuda increases cargo tariffs up to 35 percent
Garuda increases cargo tariffs up to 35 percent
JAKARTA (JP): Flag carrier Garuda Indonesia raised its
domestic cargo tariffs by a range between 30 percent and 35
percent as of Dec. 1.
Chandra Giri, the head of the airline's cargo division, said
the tariff increase was made to compensate for the depreciation
of the Indonesian rupiah against the U.S. dollar and higher fuel
prices.
The tariff increase in the airline's cargo service was the
first in the last three years, Chandra said. He said within the
last three years, Garuda had suffered a significant loss from the
depreciation of the rupiah against the dollar.
The cargo tariff was set in rupiah, based on the value of the
dollar at that time, while most of the airline's leasing expenses
were in U.S. dollars.
Like other airlines, Garuda was also affected by a continued
increase in fuel prices, which increased by an average of 25
percent per annum.
"The International Air Transport Association actually
recommended its airline members a few months ago to add a US$0.1
surcharge per kilogram to their cargo services to anticipate the
rising price of fuel," he was quoted by Bisnis Indonesia as
saying. "We, however, imposed the surcharge only recently. So it
did not help much," he said.
The national flag carrier has recently leased two cargo jets
of the B-737-200C series from a Malaysian firm in a bid to cash
in on the booming Asian airfreight business.
The two cargo jets will serve domestic cargo linking major
cities in eastern Indonesia, including Surabaya, Denpasar,
Ujungpandang, Manado and Biak, as well as Irian Jaya.
Garuda has so far operated only one of the two jets. The other
is expected to arrive next month.
"A jet is leased for around $2,400 an hour," Garuda's vice
president for cargo planning and development Syahrul Tahir said
at the inaugural flight of the first B-737-200C in October.
In serving international cargo destinations, Garuda is
collaborating with foreign airlines such as China Airlines and
Korean Air.
Garuda cargo also serves a new Jakarta-Amsterdam route every
Tuesday, in cooperation with Martinair, using a B-747-200F cargo
jet, Chandra said.
"The freighter, which began operating last week, will be
officially inaugurated December 17," he said.
In regards to international cargo, he said Garuda plans to
raise its cargo tariff for international airfreight services
early next year. He refused to disclose the percentage of
increase. (04)