PT Garuda Indonesia (Persero) Tbk (IDX: GIAA), publicly known as Garuda Indonesia, is the flag carrier of Indonesia. It is named after the mythical giant bird Garuda of Hinduism and Buddhist mythology.
Its headquarters is located at the Soekarno-Hatta International Airport in Tangerang, near Jakarta. The company was listed on Indonesia Stock Exchange in February 2011, with the government of Indonesian retaining a majority of the shares. The airline employs 15,808 staff (as of December 2010).[1]
The airline's main hub is Soekarno-Hatta International Airport, with other hubs at Ngurah Rai International Airport, Bali; Sultan Hasanuddin International Airport, Makassar; and Polonia International Airport, Medan.[2][3][4] The airline flies to a number of destinations in Southeast Asia, East Asia, the Middle East, Europe and Australia. In May 2008, Garuda Indonesia received its IATA Operational Safety Audit (IOSA)[5] and in 2010 for the second time (consecutive).[6] Garuda Indonesia is currently an official sponsor of 2011 SEA Games and Liverpool FC.
The Beginning
Garuda Indonesia had its beginnings in the Indonesian war of independence against the Dutch in the late 1940s, when Garuda flew special transports with a Douglas DC-3.[7] 28 January 1949 is generally recognized as the airline's founding date, at which time the airline was known as "Garuda Indonesian Airways." The first aircraft was a DC-3 known as Seulawah (Acehnese: "Gold Mountain") and was purchased for a sum of 120,000 Malayan dollars, which was provided by the people of Aceh (notably local merchants).[8] During the revolution, the airline supported Indonesian interests, such as carrying Indonesian leaders for diplomatic missions. Now, a chartered Garuda Indonesia Airbus A330-300 is used by the President of Indonesia for presidential travels.
The Burmese government helped the airline significantly during its beginnings. The country's national airline, Union of Burma Airways, often chartered this DC-3 for its own flights. Accordingly, upon Garuda's formal joint incorporation with KLM on 31 March 1950, the airline presented the Burmese government with a DC-3. By 1953, the airline had 46 aircraft,[7] although by 1955 its Catalina fleet had been retired. Fourteen De Havilland Heron aircraft were acquired to serve shorter range routes. In June 1956, Garuda made its first Hajj flight, operated with a Convair 340 carrying 40 Indonesians, to the city of Mecca.[7]
The name "Garuda" was derived from a Dutch poem written by a renowned scholar and poet Raden Mas Noto Soeroto;[citation needed] "Ik ben Garuda, Vishnoe's vogel, die zijn vleugels uitslaat hoog boven uw eilanden" which means "I'm a Garuda, Vishnu's Bird, spreads its wings high above the Islands"
The line was mentioned by Sukarno during the Dutch-Indonesian Round Table Conference at The Hague, from August 23 to November 2, 1949.
The 1960s: Growth and expansion [edit]
The 1960s were times of growth for the airline; the fleet in 1960 included eight Convair 240s, eight Convair 340s and eight Convair 440s. In 1961 and late 1965, three Convair 990 jet aircraft were introduced along with three Lockheed L-188 Electras, and a route was opened to Kai Tak International Airport inHong Kong. After concentrating on domestic and regional services, the first flights to Europe were added on 28 September 1963, to Amsterdam andFrankfurt. In 1965, flights to Europe were expanded to include Rome and Paris via Bombay and Cairo, with the exclusive use of Convair 990 aircraft. That year, flights to People's Republic of China started, with Garuda flying to Canton via Phnom Penh. Also in 1965, the jet age arrived for Garuda, with a Douglas DC-8 that flew to Amsterdam's Schiphol Airport via Colombo, Bombay, Rome and Prague.[7]
1970s–1980s: New equipment [edit]
In early 1970s, Garuda Indonesia introduced McDonnell Douglas DC-9 and Fokker F28 jets, and at one point Garuda owned 62 Fokker jets, making Garuda the world's largest operator of F28s at that time. In 1973, the carrier introduced the Douglas DC-10; it later introduced the Boeing 747-200, in 1980, and Airbus A300-B4 on 21 June 1982. Garuda was the launch customer for Airbus A300 with two-man crew cockpit (designated A300B4-220FFCC). By 1984, nine of these were in service, supplemented by 8 Douglas DC-10s, 24 Douglas DC-9s, 45 Fokker F-28s, and 6 Boeing 747-200s. In 1985 under Reyn Altin Johannes Lumenta Garuda created a controversy by hiring foreign brand consultants Landor Associates to create a new logo and colour scheme for Garuda Indonesia, a project that cost the company millions of US dollars. This move was later on applauded as vital for the reputation and corporate identity of Garuda Indonesia as the national airline. Lumenta also increased flights frequency and destinations, reduced ticket prices and collaborated with Merpati, introducing flexible tickets valid for both Indonesian airlines.[9] During the 1970s the airline had its headquarters in Jakarta.[10]
1990s: The difficult time for Garuda [edit]
In 1991, Garuda purchased 9 McDonnell-Douglas MD-11s;[7] it later introduced Boeing 747-400 in 1994 (two of them were purchased directly fromBoeing, the third was ex-Varig), and Airbus A330-300, in 1996. But during this time, Garuda suffered two major accidents. The first of these happened in Japan in the summer of 1996; the second happened in 1997 when an Airbus A300 crashed near Medan, North Sumatra, killing everyone aboard in what remains Indonesia's worst aviation disaster. The 1997 Asian financial crisis hit Indonesia and Garuda hard, resulting in severe cutbacks on unprofitable routes. Despite once having a comprehensive worldwide route network, Garuda currently suspends services to United States, despite once flown to Honolulu and continues to Los Angeles. Largely due to historical links with the Netherlands, Garuda continued to operate flights to Amsterdam and Frankfurt after the initial cutbacks, although these flights were also discontinued from 28 October 2004. The situation was exacerbated by the September 11, 2001 terrorist attacks in the U.S., the Bali bombings, the 2004 Indian Ocean earthquake and tsunami, and the SARS scare, all of which contributed to a downturn in air travel and Indonesian tourism. However, by 2005, the airline had largely recovered from its economic problems.[11]
In 2001, Garuda established a low-cost subsidiary, CitiLink, to provide shuttle services between Indonesian cities. The carrier stated operations with five ex-Garuda Indonesia Fokker F28s.
There was speculation that Garuda would expand its route map again before the end of the decade, possibly after the scheduled completion of the new Medan airport, Kuala Namu International Airport, in 2009. However, completing the new airport has been delayed until 2012. This could include routes to major European hubs such as Paris, London, and Frankfurt, pending clearance by the European Union.
In June 2007, the EU banned Garuda Indonesia, along with all other Indonesian airlines, from flying into any European countries,[12][13] following thecrash of a Boeing 737-400 earlier that year. With the support of the international aviation industry for all Indonesian airlines, the EU promised to review its ban and sent a team of experts, led by the European Commission's Air Safety Administrator Federico Grandini to Indonesia to consider lifting the ban.[14] In August 2007, the transportation minister of Indonesia announced that the EU would lift its ban hopefully somewhere in October, stating that the ban was attributed to communication breakdown between the two parties and that discussion was in progress. In November 2007, Garuda announced its intention to fly to Amsterdam from Jakarta and Denpasar on the condition that the European Union lifted the ban on the airline. Airbus A330s and Boeing 777 were aircraft that were suggested as being suitable for use on these revitalised routes.[15] On November 28, 2007, the EU refused to lift its ban on Garuda flying to all European countries. It announced the safety reforms already undertaken were a step in the right direction for the EU to consider lifting the ban, but still did not satisfy the EU's aviation safety standards.[16] The ban was lifted in July 2009.[17] In the wake of the ban being lifted, Garuda plans to start services to Amsterdam and is considering other European destinations in the near future. Management is also considering servicing the US where it currently has no services.[18]
In July 2007, the Deputy of Marketing, Ministry of Culture and Tourism of Indonesia announced that Garuda Indonesia had plans to start service to India, although the date had not been determined.[19]
In July 2009, following a third mission led again by Federico Grandini,[20] the European Commission lifted Garuda Indonesia's ban from flying into Europe. This was followed by three other airlines.[21]
2009–Present: "Renaissance" [edit]
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Following the lifting of the EU ban against Garuda Indonesia and three other Indonesian carriers, the airline announced in July 2009 an aggressive five-year expansion plan known as the Quantum Leap.[22][23] The plan involved an image overhaul, including changing the airline's livery, staff uniform andlogo. Within a five-year period, its fleet would double from 62 to 116 aircraft.[22] The Quantum Leap also plans to boost passenger annual numbers to 27.6 million in the same period, up from 10.1 million at the time of program launch through increasing domestic and international destinations from 41 to 62.[22] Route expansions included Amsterdam, with a stopover in Dubai, in 2010. A non-stop flight using Boeing 777-300ERs is planned for 2013. Other routes to world hubs such as London, Frankfurt, Paris, Rome, Madrid and Los Angeles are being considered for reopening.[24][25][26][27][28]
In 2009, Garuda adopted a new logo and aircraft color scheme, replacing designs that had been in use for over 20 years.[29] New uniforms were introduced in 2010.[30]
At the 2010 Farnborough Airshow, Garuda announced an order for another six A330-200 airliners.[31] According to Garuda Indonesia’s Technical Director, Garuda Indonesia planned to buy nine Boeing 737-800s and two Airbus 330-200s in 2011.
With aims to improve flight capacity and frequency to eastern Indonesia, Garuda Indonesia opened a third hub located at the Sultan Hasanuddin International Airport, Makassar, South Sulawesi from June 1, 2011. The company's first two hubs are Soekarno-Hatta International Airport in Cengkareng, Jakarta, and Ngurah Rai International Airport in Denpasar, Bali.[32]
Garuda Indonesia is increasing the flight frequency of its domestic and international routes. Of the international routes, Garuda is increasing its frequency of Jakarta-Singapore to 8 times per day with a Boeing 737-800, Jakarta-Bangkok to 3 times per day with a Boeing 737-800, Jakarta-Hongkong to 2 times per day with an A330-200 and a Boeing 737-800, Jakarta-Beijing to 5 times per week with an Airbus A330-300 and an A330-200, Jakarta-Shanghai to 5 times per week with an A330-200 and an Airbus A330-300, and Denpasar-Seoul to 5 times per week with a Boeing 747-400 and an A330-300. Garuda intends to reopen its flights to Manila on November 2011. On 25 May 2012 Garuda reopened its direct flight to Taipei. International routes that are still under consideration to be reopened are Mumbai and Chennai in India. These destinations will be served from Jakarta by an Airbus A330-200. Routes such as Frankfurt, London, Rome, Paris, and Los Angeles will be reopened when the Boeing 777-300ER arrives. However, Garuda plans to wait for the route to Amsterdam to settle first, prior to the reopening other European routes and probably the route to Los Angeles.[33]
At the Paris Air Show 2011, Garuda Indonesia announced a firm order of 25 Airbus A320s with an option for another 25.[34] All 25 Airbus A320s are to be used by their subsidiary, Citilink[35]
On April 27, 2012 PT Trans Airways bought 10.9 percent stake of Garuda Indonesia unsold IPO shares from Garuda's IPO underwriters at Rp620 each for totally Rp1.53 trillion ($166.8 million). The price is higher than the lowest market price at Rp395 each, but still below IPO price at Rp750 each.[36]
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