Garuda Indonesia announced (15-Oct-2012) plans to operate its fleet of Bombardier CRJ1000 aircraft based at Makassar on regional routes in Indonesia. As previously reported by CAPA, the airline took delivery of its first of 18 96-seat CRJ1000 aircraft on 10-Oct-2012. Indonesian Minister of Transport EE Mangindaan said, "Operating from the Makassar hub to serve cities in Indonesia's eastern regions will ultimately increase connectivity between cities in the region and with other regions in the country. This effort will certainly accelerate development in the region in line with the the government's Acceleration and Expansion of Indonesia's Economic Development Masterplan 2011-2025 (MP3EI), especially the Sulawesi Economic Corridor". Garuda Indonesia president and CEO Emirsyah Satar said the airline's operation of the CRJ1000 aircraft is part of the airline's Quantum Leap programme under which the airline plans to increase its fleet from 94 to 194 aircraft by 2015 and increase its annual traffic from 17.1 million passengers to 45.4 million passengers annually. [more - original PR]
Garuda Indonesia to operate CRJ1000 fleet on regional services
You may also be interested in the following articles...
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.
Singapore Airlines to launch Jakarta-Sydney, further intensifying SE Asia-Australia competition
Singapore Airlines (SIA) will launch services from Jakarta to Sydney in Nov-2016, resulting in new competition for rivals Garuda Indonesia and Australia’s Qantas Airways. SIA’s entrance on the Jakarta-Sydney route is a strategic move and highlights its desire to pursue new areas of growth.
The Indonesia-Australia market is a logical market for SIA as it seeks to diversify its business. Indonesia and Australia are already SIA’s two largest international markets and Garuda and Qantas are already among its biggest competitors.
Competition within Asia Pacific, including the Southeast Asia-Australia market, has been intensifying. In the current highly competitive and challenging environment airlines are constantly jockeying and exploring new options to improve their position.