GA posted a first half loss of USD $212mil in 2014

[Isaac 0]

Garuda Indonesia will slow international expansion and defer aircraft following a dismal 1H2014

 

Garuda Indonesia will slow its international growth following a lacklustre performance on international routes in 1H2014, which drove a net loss of USD212 million. Garuda ecorded an average international load factor of only 63% in 1H2014 as RPKs dropped by 3% despite a 15% surge in ASKs.

 

 

Full story here: http://centreforaviation.com/analysis/garuda-indonesia-will-slow-international-expansion-and-defer-aircraft-following-a-dismal-1h2014-179690

[Johan Z 0]

I'm not surprised with this. GA has been trying to match SQ from day one.

[geoff.leo 0]

Garuda has done many things right over the past few years. Unfortunately, their long-haul widebody strategy isn't one of them. Overly ambitious in my opinion.

 

Garuda is better off concentrating on Asia Pacific and the Middle East, where its A330s and B737s work very well.

 

They don't need the B77W. They certainly can't justify it.

 

They must realize that like it or not, Jakarta's location makes it difficult for long-haul nonstop services to Europe to be profitable and sustainable. Jakarta will never be a transit hub for Southeast Asia. Indonesia's size means that large parts of the country - certainly it's key cities and even Jakarta itself, is better served by the likes of Singapore, KL and Bangkok when it comes to international connections.

 

The right thing to do will be to utilize Etihad via Abu Dhabi in the same way Qantas does it with Emirates via Dubai.

 

Sometimes it's better to contain your ambition and pick the right battles to fight.

[flee 5]

The devaluation of the Indonesian rupiah has made it very difficult for the airline - just like the devaluation of the RM is for MAS. However it is harder for Garuda as the loss of value of the Indonesian currency is even greater. With costs incurred in US$ and revenue in Rupiah, it is not surprising that it has made a loss.

 

I wonder what they will do with their B777W order - pass it on to Etihad?

[kandiah k 0]

Perhaps MH can buy the B77W from them

[KK Lee 5]

Perhaps MH can buy the B77W from them

 

Why must MH or GA use 77W for inter continental routes and incurring low load/yield? To compete with EK, EY and QR, believe frequency is more important, should start with daily 787 or A338.

[flee 5]

The B77W will be somewhat like the B744, good when its new (perhaps first 5 years) but uncompetitive economics will set in during the later years of operations.

[Johan Z 0]

Unlike 747, their 77W is premium heavy.

 

Perhaps MH can buy the B77W from them

 

Etihad likes to buy unwanted secondhand 777.