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Garuda’s Citilink to expand into international market in Malaysia, Singapore & Australia

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By Linda Blachly | January 14, 2013

 

Garuda Indonesia’s low-cost subsidiary (LCC) Citilink has placed a firm order with Airbus for 25 A320neos. The contract, signed in December, represents Citilink’s first direct purchase from Airbus. It follows an order placed in 2011 at the Paris Air Show by Garuda Indonesia for 15 A320ceos and 10 A320neos aircraft for operation by Citilink.

 

Citilink currently operates a fleet of 12 leased A320s on its fast-growing domestic network.

 

Source: ATW

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Garuda Indonesia budget subsidiary Citilink is planning more rapid domestic expansion in 2014 and the launch of international services, with an initial six routes. The expansion comes despite challenging market conditions in Indonesia and continued losses, including a net loss of USD48 million for 2013.


But Citilink is striving to reduce its costs and improve its profitability by increasing utilisation levels and average stage lengths. Longer domestic routes and the launch of international services will drive up utilisation rates on its fleet of A320s, which is expanding from 24 to 32 aircraft in 2014. International services will also provide an important new foreign currency revenue stream, cushioning the impact from the rapid depreciation of the Indonesian rupiah.


Citilink aims to launch services to four international destinations in 2014. The carrier has selected Johor Bahru in Malaysia as its first destination overseas, followed by Kuala Lumpur, Singapore and eventually Perth.



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Citilink is not really new. I flew them once in 2005 when the livery still looks like this:

 

1182072.jpg

 

I like their current branding - the green Garuda.

 

Rather surprise with the selection of JB as its first international destination.

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Citilink is not really new. I flew them once in 2005 when the livery still looks like this:

 

1182072.jpg

 

I like their current branding - the green Garuda.

 

Rather surprise with the selection of JB as its first international destination.

Yes, I know they are in existence earlier on, what I meant is that another player trying to ply South East Asia market like others....Every players are in expansion mode. Some airlines will definitely die in the process.....

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The Indonesian airlines have problems domestically due to the devaluation of the rupiah - so all of them are turning to the international market for expansion as the opportunities for domestic growth have more or less evaporated.

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Wow more and more destinations to Indonesia...makes weekend trip to Bandung, Jakarta or Surabaya even more easy...don't have to transit in KUL or crossing the causeway to SIN. How convinient.

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Indonesia’s Citilink is launching International operation, with service to Malaysia. The airline plans to operate Surabaya – Johor Bahru service from 15MAR14, followed by Surabaya – Kuala Lumpur from 03APR14.

Surabaya – Johor Bahru 1 daily
QG8870 SUB1910 – 2235JHB 320 D
QG8871 JHB2305 – 0030+1SUB 320 D

Surabaya – Kuala Lumpur 5 weekly
QG8856 SUB1455 – 1830KUL 320 x12
QG8857 KUL1900 – 2035SUB 320 x12

 

http://airlineroute.net/2014/03/05/qg-jhbkul-s14/

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