Garuda Indonesia undergoes restructure

first_imgIn response to market conditions and in line with the airline’s ongoing development, Garuda Indonesia has announced the introduction of a new “Quick Wins program”.Following the weakening Indonesian Rupiah as well as other factors which have affected the performance of international airlines around the world, Garuda Indonesia will implement several crucial measures as part of a short term strategy to increase its overall performance.The airline will focus on increasing its “Revenue Generator” in order to optimise revenue potential, restructure and mange costs to increase efficiency, and refinancing by implementing measures to secure its financial condition.Under the new structure, Garuda Indonesia will also discontinue its service between Brisbane-Denpasar, effective from 1 February 2015, as well as reduce flight routes between Jakarta-Haneda, Denpasar-Haneda, postpone the opening of new routes, including  Jakarta-Nagoya and adjust flight schedules to various destination cities in Australia and Europe.Moreover, Garuda Indonesia will adopt a fleet management program that will see the early termination of several aircraft, subleasing of aircraft, and reduction of business class seats from 12 to eight on its Boeing 737-800NG, in order to increase seat capacity in economy class of up to 15-20 percent and reducing costs.Overhead costs will also be reduced by up to ten percent by adjusting costs that do not yield any additional value and by increasing employee productivity.Source = ETB Travel News: Lana Bogunovichlast_img read more

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