Garuda's new chief sets strategies

Garuda's new chief sets strategies

JAKARTA (JP): The newly-installed president of Garuda
Indonesia, Soepandi, said yesterday that he has set major
measures to improve the performance of the national air carrier.

"I have set major programs in facing stiff competition in the
airline business, both domestically and internationally," he said
in his speech in a ceremony for Garuda's 46th anniversary at the
Jakarta Fairground yesterday.

He said that the programs include the improvement of Garuda's
public services, human resources, fleet plans, management,
profitability and business strategies.

"Garuda's responsibility will be more extensive as the
government has targeted Garuda to transport 6.79 million
passengers this year, 14 percent higher than 5.91 million
passengers in 1994," he said, adding that services for the
transportation of haj pilgrims should also be better this year.

He said that more profit centers will be established by
improving the utilization of a number of Garuda's facilities,
including warehouses, training centers and aircraft maintenance
facilities.

Soepandi, 58, was sworn in as Garuda's president last week
replacing Wage Mulyono. Soepandi was previously director of
personnel and general affairs.

He said that cooperation between Garuda and the Dutch airline
KLM, based on an alliance agreement signed last month, will be
applied soon.

According to Soepandi, there are 26 items of cooperation being
negotiated between Garuda and KLM.

Garuda, established in 1949 with a total fleet of 56 aircraft
at present, currently hires 14,589 employees, including 3,349
maintenance personnel, 3,034 cabin crew members, 646 pilots, 96
flight engineers and 7,464 other employees.

The airline's profit multiplied from Rp 7.7 billion in 1993 to
Rp 350 billion last year, of which some Rp 160 billion was
derived from the sales of its 17 aging DC-9 aircraft to a foreign
firm.

Meanwhile, Minister of Transportation Haryanto Dhanutirto, who
attended yesterday's ceremony, reiterated that Garuda should
expand its business internationally.

"Garuda is independently able to arrange its fleet plans," he
said.

Last week's replacement of Garuda's president has caused
speculations about the government's unnecessary involvement in
the airline's management. Wage had reportedly requested
replacement before his term of service ended because the
government had interfered too much in Garuda's management.

Wage who also attended yesterday's ceremony, said that there
was no pressure for his resignation. "I was just stressed," he
said.(icn)