Garuda Indonesia

PT Garuda Indonesia (Persero) Tbk (IDX: GIAA), publicly known as Garuda Indonesia, is the flag carrier of Indonesia. It is named after the mystical giant bird Garuda of Hinduism and Buddhist mythology. It is headquartered at Soekarno-Hatta International Airport in Tangerang, near Jakarta, the capital city of Indonesia. Most Garuda Indonesia shares are owned by the Indonesian government; the airline employs 5,808 staff (as of December 2010).

According to the sacred texts of Hinduism and Hindu mythology, Garuda is the carrier of the God Vishnu; a representation of Garuda appears in the National Emblem of Indonesia, Garuda Pancasila. The airline's main hub is Soekarno-Hatta International Airport, and the airline also has a hub at Ngurah Rai International Airport, Bali.The airline flies to a number of destinations in Southeast Asia, East Asia, the Middle East, Europe and Australia. It also previously flew to several destinations in North America. In June 2007, Garuda, along with all Indonesian airlines, was banned from flying to the EU.However, this ban was lifted in July 2009.In May 2008, Garuda Indonesia received its IATA Operational Safety Audit (IOSA)and in 2010 for the second time (consecutive).

Garuda Indonesia is listed as a 4-star airline by Skytrax, and is also listed among Skytrax's Quality Approved Airlines.In May 2010, the airline was named as the World's Most Improved Airline by Skytrax during 2010 World Airline Awards in Hamburg.Garuda Indonesia announced that it will join the SkyTeam airline alliance by 2012,and aims to achieve a 5-star Skytrax rating by 2013.In 2012, Garuda Indonesia has been recognized as the Best International Airline among all major airlines throughout the world with 91 percent of the passengers very satisfied.

History

The Beginnings

Garuda Indonesia had its beginnings in the Indonesian war of independence against the Dutch in the late 1940s, when Garuda flew special transports with a Douglas DC-3.26 January 1949 is generally recognized as the airline's founding date, at which time the airline was known as "Garuda Indonesian Airways." The first aircraft was a DC-3 known as Seulawah (Acehnese: "Gold Mountain") and was purchased for a sum of 120,000 Malayan dollars, which was provided by the people of Aceh (notably local merchants).During the revolution, the airline supported Indonesian interests, such as carrying Indonesian leaders for diplomatic missions. Now, a chartered Garuda Indonesia Airbus A330-300 is used by the President of Indonesia for presidential travels.

The Burmese government helped the airline significantly during its beginnings. The country's national airline, Union of Burma Airways, often chartered this DC-3 for its own flights. Accordingly, upon Garuda's formal joint incorporation with KLM on 31 March 1950, the airline presented the Burmese government with a DC-3. By 1953, the airline had 46 aircraft,although by 1955 its Catalina fleet had been retired. In June 1956, Garuda made its first Hajj flight, operated with a Convair 340 carrying 40 Indonesians, to the city of Mecca.

The name "Garuda" was derived from a Dutch poem written by a renowned scholar and poet Raden Mas Noto Soeroto;[citation needed]

"Ik ben Garuda, Vishnoe's vogel, die zijn vleugels uitslaat hoog boven uw eilanden"

which means "I'm a Garuda, Vishnu's Bird, spreads its wings high above the Islands"

The line was mentioned by Sukarno during the Dutch-Indonesian Round Table Conference at The Hague, from August 23 to November 2, 1949.

The 1960s: Growth and expansion

The 1960s were times of growth for the airline; the fleet in 1960 included eight Convair 240s, eight Convair 340s and eight Convair 440s. In 1961 and late 1965, three Convair 990 jet aircraft were introduced along with three Lockheed L-188 Electras, and a route was opened to Kai Tak International Airport in Hong Kong. After concentrating on domestic and regional services, the first flights to Europe were added on 28 September 1963, to Amsterdam and Frankfurt. In 1965, flights to Europe were expanded to include Rome and Paris via Bombay and Cairo, with the exclusive use of Convair 990 aircraft. That year, flights to People's Republic of China started, with Garuda flying to Canton via Phnom Penh. Also in 1965, the jet age arrived for Garuda, with a Douglas DC-8 that flew to Amsterdam's Schiphol Airport via Colombo, Bombay, Rome and Prague.

1970s–1980s: New equipment

In early 1970s, Garuda Indonesia introduced McDonnell Douglas DC-9 and Fokker F28 jets, and at one point Garuda owned 62 Fokker jets, making Garuda the world's largest operator of F28s at that time. In 1973, the carrier introduced the Douglas DC-10; it later introduced the Boeing 747-200, in 1980, and Airbus A300-B4 on 21 June 1982. Garuda was the launch customer for Airbus A300 with two-man crew cockpit (designated A300B4-220FFCC). By 1984, nine of these were in service, supplemented by 10 Douglas DC-10s, 24 Douglas DC-9s, 45 Fokker F-28s, and 6 Boeing 747-200s. During the 1970s the airline had its headquarters in Jakarta.

1990s: The difficult time for Garuda

In 1991, Garuda purchased 9 McDonnell-Douglas MD-11s;it later introduced Boeing 747-400 in 1994 (two of them were purchased directly from Boeing, the third was ex-Varig), and Airbus A330-300, in 1996. But, at the time Garuda suffered two accidents, the first was in Fukuoka, Japan, and the worst disaster in Indonesian aviation history, when an Airbus A300 crashed in Medan, North Sumatra. The 1997 Asian financial crisis hit Indonesia and Garuda hard, resulting in severe cutbacks on unprofitable routes. Despite once having a comprehensive worldwide route network, Garuda currently suspends services to US, despite once flown to Honolulu and continues to Los Angeles . Largely due to historical links with the Netherlands, Garuda continued to operate flights to Amsterdam and Frankfurt after the initial cutbacks, although these flights were also discontinued from 28 October 2004. The situation was exacerbated by the September 11 terrorist attacks, the Bali bombings, the 2004 Boxing Day tsunami and the SARS scare, all of which contributed to a downturn in air travel and Indonesian tourism. However, by 2005, the airline had largely recovered from its economic problems.

2000–2009: Plummeting reputation and EU ban

In 2001, Garuda established a low-cost subsidiary, CitiLink, to provide shuttle services between Indonesian cities. The carrier stated operations with five ex-Garuda Indonesia Fokker F28s.

There was speculation that Garuda would expand its route map again before the end of the decade, possibly after the scheduled completion of the new Medan airport, Kuala Namu International Airport, in 2009. However, completing the new airport has been delayed until 2012. This could include routes to major European hubs such as Paris, London, and Frankfurt, pending clearance by the European Union.

In June 2007, the EU banned Garuda Indonesia, along with all other Indonesian airlines, from flying into any European countries,following the crash of a Boeing 737-400 earlier that year. With the support of the international aviation industry for all Indonesian airlines, the EU promised to review its ban and sent a team of experts, led by the European Commission's Air Safety Administrator Federico Grandini to Indonesia to consider lifting the ban. In August 2007, the transportation minister of Indonesia announced that the EU would lift its ban hopefully somewhere in October, stating that the ban was attributed to communication breakdown between the two parties and that discussion was in progress. In November 2007, Garuda announced its intention to fly to Amsterdam from Jakarta and Denpasar on the condition that the European Union lifted the ban on the airline. Airbus A330s and Boeing 777s were aircraft that were suggested as being suitable for use on these revitalised routes.On November 28, 2007, the EU refused to lift its ban on Garuda flying to all European countries. It announced the safety reforms already undertaken were a step in the right direction for the EU to consider lifting the ban, but still did not satisfy the EU's aviation safety standards.The ban was lifted in July 2009.In the wake of the ban being lifted, Garuda plans to start services to Amsterdam and is considering other European destinations in the near future. Management is also considering servicing the US where it currently has no services.

The Garuda Indonesia Boeing 737 old and new livery line up at Soekarno Hatta International Airport, Indonesia. The far right is the new livery. (2010)

In July 2007, the Deputy of Marketing, Ministry of Culture and Tourism of Indonesia announced that Garuda Indonesia had plans to start service to India, although the date had not been determined.

In July 2009, following a third mission led again by Federico Grandini, the European Commission lifted Garuda Indonesia's ban from flying into Europe. This was followed by three other airlines.

2009–Present: Rebirth

Following the lifting of the EU ban against Garuda Indonesia and three other Indonesian carriers, the airline announced in July 2009 an aggressive five-year expansion plan known as the Quantum Leap.The plan involved an image overhaul, including changing the airline's livery, staff uniform and logo. Within a five-year period, its fleet would double from 62 to 116 aircraft.The Quantum Leap also plans to boost passenger annual numbers to 27.6 million in the same period, up from 10.1 million at the time of program launch through increasing domestic and international destinations from 41 to 62.Route expansions included Amsterdam, with a stopover in Dubai, in 2010. A non-stop flight using Boeing 777-300ERs is planned for 2013. Other routes to world hubs such as London, Frankfurt, Paris, Rome, Madrid and Los Angeles are being considered for reopening.

In 2009, Garuda adopted a new logo and aircraft color scheme, replacing designs that had been in use for over 20 years. New uniforms were introduced in 2010.

At the 2010 Farnborough Airshow, Garuda announced an order for another six A330-200 airliners. According to Garuda Indonesia’s Technical Director, Garuda Indonesia planned to buy nine Boeing 737-800s and two Airbus 330-200s in 2011.

With aimes to improve flight capacity and frequency to eastern Indonesia, Garuda Indonesia open a third hub located at the Sultan Hasanuddin International Airport, Makassar, South Sulawesi from June 1, 2011. The company's first two hubs are Soekarno-Hatta International Airport in Cengkareng, Jakarta, and Ngurah Rai International Airport in Denpasar, Bali.

Garuda Indonesia is increasing its flight frequency of its domestic routes and its international routes. Of the international routes, Garuda is increasing its frequency of Jakarta-Singapore to 8 times per day with a Boeing 737-800, Jakarta-Bangkok to 2 times per day with a Boeing 737-800, Jakarta-Hongkong to 2 times per day with a A330-200 and a Boeing 737-800, Jakarta-Beijing to 5 times per week with a A330-300 and a A330-200, Jakarta-Shanghai to 5 times per week with a A330-200 and a A330-300, and Denpasar-Seoul to 5 times per week with a Boeing 747-400 and a A330-300. Garuda intends to reopen its flights to Manila and Taipei on November 2011. International routes that are still under consideration to be reopened are Mumbai and Chennai in India. These destinations will be served from Jakarta by an Airbus A330-200. Routes such as Frankfurt, London, Munich, Rome, Paris, and Los Angeles will be reopened when the Boeing 777-300ER arrives. However, Garuda waits for its route to Amsterdam to settle first, after which they will reopen other European routes and probably its route to Los Angeles.

At the Paris Air Show 2011, Garuda Indonesia announced a firm order of 25 Airbus A320s with an option for another 25. All 25 Airbus A320s are to be used by their subsidiary, Citilink

Corporate affairs and identity

Head office

Garuda Indonesia has its head office at Soekarno-Hatta International Airport in Tangerang, Banten, Indonesia, near Cengkareng and near Jakarta. The head office is the Garuda Indonesia Management Building, located within the Garuda Indonesia City Center. The about 17,000-square-metre (180,000 sq ft) head office facility is on a 5-hectare (12-acre) plot of land. As of 2009, the head office houses the Garuda management and about 1,000 employees from various units. Indonesian President Susilo Bambang Yudhoyono opened the current Garuda head office in 2009.The previous head office was located in the city center of Jakarta, in Central Jakarta.

Privatization

Garuda Indonesia had announced that its subsidiary, GMF AeroAsia would be listed in Indonesia Stock Exchange in 2008. However, due to financial crisis in 2008, GMF delayed IPO until 2009. The Ministry of State-Owned Companies (Kementrian BUMN) also had announced a plan to privatize Garuda, that opened a possibility to offer its shares publicly. Garuda Indonesia aimed to list on February 11, 2011, for an Initial Public Offering.Government of Indonesia has confirmed the IPO price of Garuda Indonesia at Rp.750 per share and also cut offering size to 6.3 billion shares only from 9.362 billion planned before.

Subsidiaries

Garuda Indonesia’s subsidiaries include PT. Aerowisata, PT. Abacus DSI, PT. Gapura Angkasa, PT. Garuda Indonesia Citilink, PT. Garuda Maintenance Facility Aero Asia, Cargo Garuda Indonesia and PT. Aero System Indonesia.

Destinations

On 13 October 2009, Garuda Indonesia announced they will be resuming flights to Europe for the first time after removal from the E.U. blacklist. The flight, operating since 1 June 2010, is to Amsterdam, The Netherlands, with a stopover at Dubai, United Arab Emirates, operated by an Airbus A330-200 aircraft.

In 2011, Garuda flew 17.1 million passengers up 39 percent from last year, while the total revenue jumped 38 percent to Rp27.1 trillion ($2.95 billion). Composition of passengers on domestic routes and international routes was 81 percent to 19 percent respectively.

Codeshare agreements and alliances

Codesharing has allowed Garuda Indonesia to expand services into Western Europe. Garuda also expressed an interest in joining the SkyTeam alliance, which would make it the second airline in Southeast Asia to join after Vietnam Airlines. Membership would also open SkyTeam's network to Indonesian, Australian and New Zealand markets. In December 2009, three SkyTeam members – Korean Air, KLM and Delta – committed to supporting Garuda Indonesia to join SkyTeam. This made Garuda eligible to apply for membership in the alliance. On November 23, 2010, Garuda Indonesia signed an agreement to join SkyTeam. The airline will officially enter the alliance in mid-2012.

Services

Garuda Indonesia is a full-service airline featuring both business and economy classes. The airline began to introduce new premium products and services with the arrival of the Airbus A330-200 and Boeing 737-800.

Cabin

Executive Class

Executive Class is Garuda's business class product available on board all Garuda Indonesia aircraft. The Airbus A330-200 and Airbus A330-300 feature the new Executive Class product with flat-bed seats, 74" seat pitch and recline up to 180 degrees. The seats feature an in-armrest 11-inch touch screen LCD with AVOD on each seat, in-seat laptop power supply, and personal reading light. The seats are in 2-2-2 configuration. The newer Boeing 737-800 also have a new Executive Class product in a 2-2 configuration.

The Boeing 747-400 and Boeing 737 still have the old Executive Class seat. Seats on the Boeing 747–400 have 46"-48" seat pitch with seat width of 16". On the Boeing 737 aircraft, including the -300, -400, -500, and older -800 Series, seat pitch ranges from 41" to 44" with seat width of 19". On selected aircraft, in-seat TVs are also available.

A range of hot and cold food and beverages is available, and snacks or meals are offered depending on the length of the flight. Wine and beer is also offered on international flights. In July 2011, Garuda Indonesia launched Indonesian Rijsttafel in Executive Class as its signature in-flight service.This Indonesian signature dining was meant to introduce the passenger to wide array of Indonesian cuisine in a single setting as part of Garuda Indonesia experience. This in-flight Indonesian Rijsttafel include Indonesian signature dishes; choices of nasi kuning or regular steamed rice, accompanied with choices of dishes such as satay, rendang, gado-gado grilled chicken rica, red snapper in yellow acar sauce, fried shrimp in sambal, potato perkedel and tempeh, also with kerupuk or rempeyek crackers.

Economy Class

Economy Class is available on board all Garuda Indonesia aircraft. Seat pitch ranges from 30" to 35" depending on the aircraft with seat width of 17". The Airbus A330-200 and Airbus A330-300 aircraft and the newer Boeing 737-800 aircraft have the new Economy Class seats which offer 9-inch touch screen entertainment with AVOD.

Hot and cold meals or snacks and beverages are offered depending on the length of the flight. Wine and beer is also offered on international flights.

In-flight entertainment

In-flight entertainment is available on board selected aircraft. The Boeing 747-400 aircraft have cabin screens with Airshow, a moving map system to allow passengers to track the progress of their flight, as well as feature films and short movies. Audio programming is also available. Passengers in Executive Class can order portable media players (AVOD system) from flight attendants on international flights only.

The Airbus A330-200, Airbus A330-300 and newer Boeing 737-800s have in-flight entertainment in all classes. This includes 9-inch touch screen LCD in Economy Class and 11-inch touch screen LCD in Executive Class. In the Airbus A330-300, the screens are located on the seat backs or in the armrest on bulkhead rows, while in the Airbus A330-200 and the Boeing 737-800s, they are located in the armrest in Executive Class or on the seat back in Economy Class. All PTVs are equipped with an Audio & Video on Demand (AVOD) system. This AVOD system offers 25 choices of films, 10 TV programs, 35 music albums, and 25 interactive video games.

In addition, with Garuda Indonesia orders of ten Boeing 777-300ERs and 50 Boeing 737-800s during the Singapore Airshow, these new aircraft will be fitted with a new in-flight entertainment program and a new cabin ambience. The new release movies are expected to be shown in the most high-tech LCD TV screen made by Bose Audio system.

Newspapers and magazines are provided to all passengers on board Garuda Indonesia flights.

Ticketing

A Jakarta-based 24-hour call center is available for local customer access where payment can be made by credit cards, internet/mobile banking or transfer via ATM. Recently online booking from their website is also possible with payment can be made online with credit cards from select countries.

In April 2011, Garuda Indonesia announced plans to develop online sales. Garuda Indonesia had cooperated with Visa and Mastercard to develop an online credit card payment system, allowing customers to use Paypal. Debit card payments may be processed with Bank Mandiri, BCA or BII.

Frequent-flyer program

Garuda Frequent Flyer was launched in September 1999.In 2005, Garuda Indonesia relaunched its frequent-flyer program called Garuda Frequent Flyer (GFF) with a new look, benefits and services. The new program allows members to earn miles on domestic and international flights and has four tiers of membership covering GFF Junior, Blue, Silver, Gold, and Platinum status levels. Since June 2011 Garuda Indonesia launched a joint frequent flyer program with Korean Air. Members of the Garuda Frequent Flyer (GFF) program and Korean Air’s SkyPass program will benefit from the cooperation by accruing mileage for flying both Korean Air and Garuda or any Garuda–Korean Air code share flights.

Executive Lounge

The Garuda Executive Lounge is open to passengers travelling in Executive Class, as well as those holding a Gold or Platinum Garuda Frequent Flyer card. Passengers with an Executive Card Plus card or Garuda Indonesia Citibank credit card can also gain access to the lounge. Lounges are located at Soekarno-Hatta International Airport and throughout Indonesia, offering food and drinks, wireless internet, showers, meeting rooms and business services.

Awards

After got the World's Most Improved Airline at the SkyTrax World Airline Awards, Garuda Indonesia also got Asia's leading service quality airline by the Center for Asia-Pacific Aviation (CAPA) in 2010. In 2012, based on Roy Morgan research company, Garuda Indonesia has been recognized as the Best International Airline among all major airlines throughout the world and toppled Singapore Airlines, Emirates Airlines and Air New Zealand with 91 percent of the respondents being 'very satisfied'.

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