Garuda Indonesia Part 1: Strategic international expansion and an ambitious hub plan for Jakarta
Garuda Indonesia is committed to international expansion, viewing it as critical to its long-term strategy. The airline is willing to launch and maintain unprofitable long haul routes as part of a strategy aimed at raising Garuda’s international profile and establishing Jakarta as a major transit hub.
Garuda is working on improving its performance in London Heathrow, which was launched at the end of Mar-2016 and has experienced initial load factors of less than 50%. Heathrow, Amsterdam and potential new long haul destinations are long-term investments that Garuda is willing to fund with profits from its domestic operation.
Garuda is also looking at building up its regional international network, which will help raise its profile in ASEAN and feed new medium and long haul routes. Garuda currently only serves three international destinations in Southeast Asia/ASEAN.
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