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SE Asia-London market: Garuda Indonesia learns a difficult lesson 

Analysis

Garuda Indonesia is dropping London after four years and several unsuccessful attempts at serving the London market. Garuda's decision to stop providing an online product to London ends a colourful chapter in its history that dates back a decade, when it ordered 777-300ERs as part of an ambitious long haul expansion plan for the then reinvigorated flag carrier.

Pulling out of Heathrow is hardly a surprise, given that Garuda's London service has been highly unprofitable. Garuda has been restructuring in a bid to return to profitability and therefore cannot afford to continue covering losses on the Jakarta-London route.

Garuda's strategy for serving London was flawed from the beginning, resulting in several adjustments. Garuda has only offered nonstop flights in both directions for less than year.

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