Garuda Indonesia to focus on rapid domestic expansion before turning attention to international

Garuda Indonesia is planning further domestic expansion by launching a turboprop operation in 2013 that will be used alongside its new regional jet fleet to access Indonesia's smaller but fast-growing markets. Expansion on trunk routes is also expected by redeploying A330 widebodies from international routes, which will allow for more efficient use of gates and slots at Garuda's congested Jakarta hub until the government moves forward with a plan for expanding the existing airport and constructing a new airport at Indonesia's booming capital.

Garuda and most of Indonesia's carriers see huge near-term opportunities in the domestic market, where demand continues to grow at high double-digit levels on the back of rapid economic growth. Indonesian carriers also expect the regional international market to expand fast, albeit more slowly than domestic, while growth on long-haul routes will continue to be relatively modest for the time being.