Garuda Indonesia CEO Emirsyah Satar stated the airline is “back in business” after resuming flights to Europe and moving ahead with expansion plans, including the acquisition of new aircraft (AAP, 20-Oct-2010). To fund the expansion, Garuda now plans to launch its IPO in Feb-2011. The carrier hopes to raise USD300 million to acquire six new A330-200 aircraft and strengthen its capital structure. The carrier now plans to expand internationally and domestically, with Mr Satar stating there is a lot of untapped potential in the domestic market. Garuda plans to increase its international route network from 18 destinations in 2009 to 28 by 2014 and increase its domestic destinations from 23 to 24 in the same period. Mr Satar identified Australia, China, Japan, the Middle East and South Korea as targets. Garuda is also aiming to report a net profit of USD414 million (INR3.7 trillion) in 2014 (Channel NewsAsia, 20-Oct-2010).
Garuda Indonesia: “In the past, what we were doing was setting the strong foundation. Well, we are back in business. If you look at the revenue contribution, [it] will not be significant … You are only talking about one route, Amsterdam, but symbolically we are back as a safe airline. Right now, we follow where the trade and ... where the tourist growth is,” Emirsyah Satar, CEO. Source: AAP, 20-Oct-2010.