Garuda Indonesia 2015 outlook: slower, but still double digit capacity growth as new CEO takes over

Garuda Indonesia is again planning double digit capacity growth in 2015 as the group expands its fleet by 23 aircraft. But the pace of growth - approximately 10% to 15% - represents a slowdown compared to 2014 or 2013.

Garuda's international network will likely expand by one destination, Nagoya, as the focus will primarily be domestic, particularly its regional operation. Expansion to Europe is not expected as Garuda plans to use the three additional 777-300ERs it is slated to add in 2015 on existing routes to Saudi Arabia.

While 2015 will not be a momentous year from a growth or strategic standpoint it will mark the start of a new era for Garuda due to the first leadership change in a decade. The new CEO will face familiar challenges including intensifying competition and further devaluation of the local currency, which could offset the impact of lower fuel prices.