Indonesian Government confirmed Garuda Indonesia plans to offer up to 25% of shares in an IPO, to be launched in 2Q2010 (Travel Mole, 19-Jan-2010). Capital raised from the offering will be used to fund the carrier’s expansion plans. 100% of the carrier’s debtors recently accepted Garuda’s financial restructuring.
Indonesian Government confirms Garuda Indonesia to offer up to 25% of shares in IPO
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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.
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.