Garuda Indonesia President Director, Emirsyah Satar, stated the carrier plans to raise as much as USD400 million in an initial public offer (IPO) in mid-2010, to fund its future expansion (Bloomberg, 12-Aug-09). The airline also plans to acquire local rivals and operate to new destinations in Japan, South Korea and Europe, with the carrier planning to double its fleet to 103 aircraft by 2013 to support these plans and to improve its safety record.
Garuda Indonesia plans USD400 million IPO in mid-2010
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Turkish Airlines and Pegasus to take unprecedented capacity decisions as Turkey air traffic slumps
Until 2014 Turkey was one of the most reliably fast-growing air traffic markets in Europe. In 2015 passenger numbers levelled off, and in 2016 traffic is set to decline. The impact of geopolitical events, including a series of terrorist attacks, the civil war in neighbouring Syria and the failed coup attempt in Jul-2016, has weighed heavily on demand for international travel to/from Turkey.
Foreign airlines switched capacity away from Turkey in summer 2016, but the country's two largest operators – Turkish Airlines and Pegasus Airlines – continued to grow. However, following years of double-digit growth by both, Turkish Airlines and Pegasus Airlines are taking unusual steps this winter. According to data from OAG, Turkish looks set to implement year-on-year capacity cuts, while Pegasus appears to be planning flat capacity for the period from Nov-2016 to Mar-2017. It seems likely that both airlines will again cut their growth targets for 2016.
Moreover, Pegasus is seeking wet-lease customers for six of its current fleet of 73 aircraft. Perhaps more significantly, Turkish is to reschedule 165 aircraft deliveries planned for 2018-2022, cutting its planned fleet size in 2021 from 439 to 400.
Garuda Indonesia international outlook Part 2: expanded partnerships critical for long haul success
Garuda Indonesia is seeking to expand its partnership with Delta Air Lines ahead of launching flights to the US. Garuda needs a stronger relationship with Delta and will need to reconsider plans for its own US flights if the right partnerships are not in place.
Expanded partnerships are crucial for Garuda as it attempts to improve its position in the international market. Garuda has been working on boosting ties with several SkyTeam members, resulting in a new codeshare with Aeromexico and an enhanced partnership with KLM.
Garuda has also been pursuing ambitious and strategic expansion of its own long haul network. However this expansion has been highly unprofitable, and in several markets Garuda would be better off relying on partners.