Garuda Indonesia launched Jakarta-Amsterdam via Dubai service on 01-Jun-2010 – see Route Changes Table for more information (Bloomberg, 01-Jun-2010). The route is Garuda’s first European service in six years and comes after the EU lifted its ban on the carrier in 2009. CEO, Emirsyah Satar, stated Garuda also plans to launch direct services to Frankfurt, London, Paris and Rome. A330 equipment will be deployed on the route until it takes delivery of new B777-300ER aircraft from next year. Mr Satar added he expects the carrier’s profits to increase by 20% year-on-year in 2010. The carrier also expects to appoint underwriters soon for its planned IPO.
Garuda launches Jakarta-Amsterdam via Dubai service
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Refusing to allow SIA and Lufthansa to coordinate prices and schedules in the Indonesia-Europe market may not have a significant impact on the overall SIA-Lufthansa JV. However, it is an unfortunate move by Indonesian authorities to protect Garuda ahead of the airline's potential launch of services to Germany.
Preventing or delaying SIA from launching Jakarta-Sydney has a bigger short term impact as it leaves in place – at least for now – the Garuda and Qantas duopoly in a growing market. SIA has also been temporarily stripped of 19 weekly slot pairs at Jakarta Soekarno-Hatta International Airport, in another related and seemingly protectionist move.
Southeast Asia aviation outlook: passenger growth accelerates, led by Vietnam, Myanmar and Malaysia
Southeast Asia’s aviation market recorded healthy growth in 2016, with passenger traffic expanding faster than the global average across nearly every country in the region. Six of Southeast Asia’s 10 countries had growth in or near the double digits, led by Vietnam and Myanmar. Seven countries had growth equal to, or higher than, in 2015.
Southeast Asia should continue to experience rapid growth in 2017 and beyond. Vietnam and Myanmar will likely again lead the pack in 2017, joined by Malaysia. The Philippines should experience growth of approximately 10% for the third consecutive year, also putting it towards the top of the pack.
However, overcapacity remains a long term concern, pressuring yields and profitability. The average profit margin of the Southeast Asian airline sector significantly lagged the global average in 2016, and this trend will likely continue in 2017.