Aviation Observer Alvin Lie: Facing Global Turbulence, Garuda Indonesia Cs Must Activate Survival Mode To Survive

Illustration. (Photo: Doc. Garuda Indonesia)

JAKARTA - Aviation observer Alvin Lie reminded that the entire aviation industry in the world is experiencing severe shocks as a result of the impact of the COVID-19 pandemic. According to him, this 'turbulence' must be dealt with with a realistic approach for the survival of transportation service providers.

The reason is, a number of stimuli and incentives that have been provided by the government have not been able to boost airline performance because the main factor of the pandemic is still the main obstacle that has not been resolved.

"All airlines in the world experience the same turbulence. In order to survive, there is no choice but to activate survival mode, ”he told VOI, Thursday, May 27.

Alvin added that this defense method could be implemented through a number of policies, such as reviewing routes and flight schedules.

"Airlines must be smart in calculating each flight, not only the route but the schedule. "It needs to be studied which ones are productive or not because each flight has its own fixed cost," he said.

Furthermore, Alvin gave his own credit to the operational plan of the new Super Air Jet airline, which is ready to enliven the archipelago sky amid the current pressures of the aviation industry.

"I see it (Super Air Jet) as an entrepreneur's foresight in utilizing cheap plane rental when other airlines have difficulty paying installments and fleet leases. It is true, they procured a rather old aircraft, namely the old Airbus A320 series, but in terms of costs and fuel costs it is more efficient and still complies with safety standards, "he explained.

For information, recently the airline industry in the country has been overshadowed by unpleasant news from the national airline Garuda Indonesia, which is currently entangled in financial problems with an estimated value of up to Rp70 trillion.

Inevitably this state-owned enterprise must find a strategy to survive. Most recently, Garuda management is known to offer early retirement to employees in order to improve their balance sheet.

The early retirement program was originally set to be effective on July 1, 2021. However, since 19 May, the management of Garuda Indonesia has opened registration for employees who are willing to participate in the program earlier.