Garuda upbeat despite slumps

Dadan Wijaksana, The Jakarta Post, Jakarta

Despite worries that the global airlines industry will continue to slump, the country's flagship carrier Garuda Indonesia is still optimistic over its business outlook.

Garuda president Abdulgani said on Thursday that the sharp fall in air travel worldwide - triggered by last month's terrorist attacks in the United States - has yet to have an impact on his company.

"Up to now, I can say that everything has been normal for the company. Both the flight schedules and the amount of passengers, are all still consistent with what we've expected," Abdulgani told reporters, on the sidelines of an MoU signing ceremony with state-owned telecommunications firm PT Telkom, which provides technical assistance for the establishment of a one-stop service for Garuda customers.

"Most of our international flights have Bali on their final destination, which has long been regarded as one of the best places to relax in the world.

"And they (international travelers) know Bali is a safe place regardless of what happens in other areas of the country. They just keep coming in," Abdulgani reiterated.

The deadly terrorist attacks in the U.S. has made many wary of flying which has caused a sharp decline in the number of airline passengers worldwide, experts have said.

The attacks also played a part in the increase of insurance premiums that airlines must pay to avoid grounding.

Garuda has recently imposed a US$5 surcharge on its international air tickets to cover the higher insurance cost.

Abdulgani however, insisted the hike would not make his company's ticket pricing less competitive internationally.

"No, not really. I've told you, there is no decline in our numbers of passengers so far," he replied.