Garuda to operate Abacus next month

Garuda to operate Abacus next month

JAKARTA (JP): Garuda Indonesia, the national air carrier, will operate the Abacus Mega Computerized Reservation System next month after acquiring a two percent stake of the Singapore-based business early last year.

Sunarjo, an executive of Garuda's subsidiary which will run the business, said yesterday that the application of the system is expected to boost the industry of aviation and tourism in the country.

Sunarjo said, "We are holding trial operations, starting late December until later this month, at five of Garuda's ticketing offices. Operations will officially start in February," the Antara news agency reported.

He also said that Garuda will set up a new company for the business, which has been approved by the Investment Coordinating Board and President Soeharto.

He refused to reveal the name of the new company, which will be regarded as a foreign investment company with a basis capital of US$5 million.

The planned company will tackle the marketing of Abacus' travel packages, including information on airlines, hotels, car rentals and travel agents.

Garuda's commercial director, Kussuyono, said recently that the planned subsidiary will likely be named the National Marketing Company and that it will help Garuda offer air travel and service packages, which have so far been managed by the airline.

Sunarjo said that many foreign airlines actually have subscribed the Abacus service.

"Domestic airlines are still reluctant to subscribe," he said, adding that the fee is $2 to $3 per route.

Abacus Mega's business covers hundreds of hotels throughout the world and dozens of airlines. A number of leading airlines, including All Nippon Airways, Singapore Airlines, EVA Air, Silk Air, Philippines Air and Cathay Pacific, participate in the ownership of the system. Garuda's two-percent stake in Abacus is worth $18 million. (icn)