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Garuda adjusts 777-300ER route plans to focus on Japan while dropping Australia-London one-stops

Analysis

Garuda Indonesia is planning further expansion to Japan as it decreases focus on Europe by dropping plans to operate non-stop services to London and to compete in the Australia-London market. The U-turn in Garuda's widebody fleet deployment strategy reflects the intense competition in the Southeast Asia-Europe and Australia-Europe markets compared to the more attractive expansion opportunities within Asia.

Garuda's new flagship fleet of 777-300ERs was initially intended to operate several new non-stop long-haul routes to Europe, starting with London in Nov-2013. Garuda instead now plans to use a small portion of its 777-300ER fleet for long-haul services, operating only five weekly flights to Europe on a Jakarta-Amsterdam-London Gatwick routing.

Garuda also has dropped plans to deploy the 777-300ER to Sydney as part of a one-stop same plane product for the Australia-UK market. The carrier instead is expanding capacity in North Asia, particularly to Japan where it sees growing demand and opportunities for connections with other SkyTeam members and new partner All Nippon Airways.

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