Garuda Indonesia’s entry into SkyTeam membership is rescheduled to early 2014, according to SkyTeam managing director Michael Wisbrun (alternativeairlines.com, 11-Jun-2012). Garuda’s membership into SkyTeam was originally announced in 2011 however it has been delayed due to the incompatibility of its existing reservations system. Integration with existing member airlines’ IT systems is a requirement for an airline to join the alliance. Garuda Indonesia plans to adopt the Amadeus Altea reservations platform as part of its “Quantum Leap” investment programme which will allow it to join the alliance.
Garuda Indonesia entry into SkyTeam rescheduled to early 2014
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Global alliances as the airline system metamorphoses: A view to 2025
The international aviation world will look very different in a decade. The big US airlines are re-emerging from their shells as prosperity (and slow growth in their mature domestic market) prompts them to go forth internationally.
China is inevitably and remorselessly stamping its shape on global markets; the Gulf carriers continue to expand and attract the ire of those who prefer the status quo; and low cost carriers proliferate and metamorphose.
And all this while, sadly, airlines look like remaining confined to the 1940s’ archaic ownership and control rules. Within this confinement, they continue to struggle to find new ways of expanding their geography – and, in some cases, of restricting others’. International markets have another drawback. They tend to be much more competitive, in diverse ways, than nationally protected domestic markets.
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.