China and Indonesia signed a package of economic and trade cooperation agreements valued at USD6.6 billion on 08-Nov-2010, covering areas such as finance, energy, electricity and agriculture (Xinhua, 08-Nov-2010). China and Indonesia also proposed to increase bilateral trade volume between the two countries to USD50 billion by 2014.
China and Indonesia conclude USD6.6bn in trade agreements
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Garuda Indonesia international outlook Part 1: further expansion despite weak 1H2016 results
Garuda Indonesia is planning further international expansion in 4Q2016 and 2017, despite a recent lacklustre performance in the international market. Garuda is adding capacity to China in 4Q2016 and aiming to launch services to the US in 2017.
Garuda’s international load factor was only 70% through the first eight months of 2016 as the airline struggled to fill additional seats generated by an 18% increase in ASKs. International yields have also declined as Garuda swung back into the red in 1H2016.
The long haul network has particularly struggled, driving the drop in profitability. However Garuda is keen to continue strategic expansion.
Disruption in the airline industry. It will happen sooner than we think: Part 1
There are two essential elements to the airline industry: flying aeroplanes and selling (and buying) seats. More technically this can be described as (1) operational; and (2) marketing and sales. There are other important activities, such as lobbying government to limit competition, and exploiting frequent flyer programmes, but those two are the core activities now facing disruption.
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