Garuda's outgoing chief praised

Garuda's outgoing chief praised

JAKARTA (JP): Minister of Transportation Haryanto Dhanutirto
yesterday acknowledged that Garuda Indonesia, the national flag
carrier, significantly improved under the management of Wage
Mulyono, who was replaced by Supandi last Friday.

"Wage was entering retirement and I have to underline that he
was successful in managing Garuda. For instance, the airline's
profit surged from some Rp 7 billion in 1993 to more than Rp 350
billion in 1994," he told reporters after attending a ceremony
for the transfer of Wage's job to his successor Supandi at
Garuda's headquarters here.

Haryanto's statement on the 1993 profit was apparently a
correction to his own figure of Rp 73 billion that he mentioned
last year.

The 1994 profit actually included the cash payment from the
sale of 17 aging DC-9 aircraft to an Australian company.

The ceremony, attended by Director General of Air
Transportation Zainuddin Sikado and Director General for State
Enterprises Martiono Hadianto, was closed to reporters.

"I did not want my photograph taken," Haryanto said after the
ceremony.

Some officials attending the ceremony said that Haryanto was
so touched when shaking hands with Wage that his eyes filled with
tears.

Wage was absent at Supandi's installation ceremony held at
Haryanto's office last Friday.

Haryanto yesterday declined to comment on controversial
reports about the replacement of Wage, who reportedly requested
an early resignation due to unnecessary intervention from the
government. Wage, 61, should actually serve as Garuda's president
until early 1997.

The minister also said that Garuda must be very clever in
controlling its financial affairs, in particularly in dealing
with the procurement of aircraft.

Meanwhile, Martiono said that Garuda cannot directly arrange
loan raising.

"It's the government's task to accrue loans for state firms
because it will affect the country debt service ratio," he said.

Martiono also said that many airlines all over the world also
suffer financial problems as the prices of jets have increased at
a faster rate than airfares.

The prices of jets have tripled in the last 15 years, while
airfares have remained the same, he said. (icn)