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Garuda remains optimistic over profit despite crisis
Garuda Indonesia, the nation's flagship airline, remains optomistic that it can improve on last year's profits in spite of the recent sharp devaluation of the rupiah against the U
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Garuda Indonesia, the nation's flagship airline, remains optomistic that it can improve on last year's profits in spite of the recent sharp devaluation of the rupiah against the U.S. dollar.
"We are still positive about our operating profit despite the depreciation of the rupiah. Thus far, we have recorded a substantial income," Garuda's president director, Emirsyah Satar, said.
The value of the rupiah depreciated from Rp 9,330 on Sept. 24 to Rp 10,920 on Wednesday.
"However, we have not calculated the foreign currency loss due to the rupiah depreciation in our budget," said Emirsyah, an elementary school buddy of U.S. president-elect Barack Obama.
According to Pujobroto, Garuda's vice president corporate secretary, during the first eight months of this year Garuda gained a net profit of Rp 272 billion (US$27.2 million), an increase on the Rp 259 billion made in 2007.
Pujobroto said the company had also benefited from the decline in fuel prices, which allowed it to lower the fuel surcharge paid by passengers.
International crude oil prices plunged from a record high of $147.27 a barrel in July to $68 a barrel on wednesday.
"We have not felt the impact of the global economic crisis yet, but we must be alert to an expected slow down in demand for flights in the foreign market," Pujobroto said.
Garuda, which has received approval from the House of Representatives to go public next year, might delay the sales of its shares on the capital market due to the global economic crisis, he added.
According to the plan, Garuda is to sell 30 percent of its shares in 2009 in order to improve the company's financial state. (JP/dis)
