Indonesian Political, Business & Finance News

Garuda upbeat despite slumps

| Source: JP

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.

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