JAKARTA - Garuda Indonesia will limit the company's operations, this is due to financial problems that entangle the company. The latest step that will be taken by PT Garuda Indonesia (Persero) Tbk is to cut 97 flight routes, both domestic and international.
President Director of PT Garuda Indonesia Irfan Setiaputra expressed his apologies to a number of council members and local governments if they had to close unprofitable routes.
In a meeting with Commission VI of the DPR, on Tuesday 9 November, Irfan revealed that the airline's route plan would be reduced from the original 237 to 140 routes.
"So ladies and gentlemen, we ask for your support as stated, if we are not lucky, we will close. Tarakan, we will close, sorry, we apologize. We are firm, including the Regional Government and the Governor," said Irfan, in a working meeting with Commission VI, Tuesday, November 9. .
Furthermore, Irfan said that so far the company has been pressured to open routes that are not profitable because the state-owned airline is also experiencing a lot of pressure to open routes.
According to Irfan, the company bears the loss due to operating on routes that do not generate revenue. The revenue earned by airlines from certain routes is not commensurate with the operating costs incurred.
"Commission VI helped to agree, we did a business plan, Garuda had to make a profit. We know it is difficult to make a profit, one of which is being pushed, there is a lot of pressure to open routes," he said.
This policy is also in line with the reduction in the number of aircraft serving flights. The number of aircraft which is currently 202 units will be reduced to 134 in 2022.
Irfan said, this is because most of the aircraft will be grounded by the lessor. The closure of a number of flight routes is carried out as a guarantee to the lessor that the company will be profitable in the future.
"What's causing the problem is excitement or style going to places where the benefits are not clear. We will close Amsterdam, London, Nagoya. Pak Erick goes back and forth to convey to the board of directors: close if it is not profitable," he said.
However, said Irfan, flights to China will still be done because it is profitable. Because flights there also carry cargo.
"To China, Australia is still flying because fortunately the cargo is loaded. Now it flies once a week. Our Jeddah is still closed," he said.
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