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Comments: Garuda to develop secondary hubs

Indonesian flag carrier Garuda Indonesia plans to develop secondary hubs in Indonesian major cities in addition to its major hubs in Jakarta and Denpasar as part of its Quantum Leap program

The Jakarta Post
Fri, February 12, 2010 Published on Feb. 12, 2010 Published on 2010-02-12T14:05:29+07:00

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I

ndonesian flag carrier Garuda Indonesia plans to develop secondary hubs in Indonesian major cities in addition to its major hubs in Jakarta and Denpasar as part of its Quantum Leap program. The secondary hubs would include cities such as Balikpapan in East Kalimantan, Medan in North Sumatra, Surabaya in East Java and Makassar in South Sulawesi, Garuda's president director Emirsyah Satar said Wednesday.

Your comments:
The time has come for the state to leave the airline business. The collapse of state-owned airline giants across the world is already a very big list of airlines, which shows that the government can never run any business, when open to competition.

Garuda should drop all of its expansion plans, as otherwise it could be the next Bank Century in the making. The board of directors should strongly recommend to the government to privatize the airline, as the airline business cannot be run any more with the government's way of working.

Even with some of the best governments like Japan and the UK, the airline business collapsed, so let us not believe that we in Indonesia can do any better then these examples. Lately, there has been improvement in Garuda*s performance, and this would be the right time to leave the business, for the benefit of saving future taxpayers' money.

Atul
Bandung

Atul, I think you are too pessimistic. There are different demographics and geographies with the country you have mentioned. With a population of more than 200 million, more than 100 destinations separated by sea, a width close to that of the US, indeed Indonesia is a really big opportunity for airlines companies, including Garuda.

Garuda has been known for its service quality and consistency with it. In addition, your general assumption that the cause of the UK's and Japan Airlines' failure was because the government was the one handling the business was totally mistaken. You should have more than words to make such assumption.

However, from time to time, Garuda has improved its performance, including involving so many professional people in the line management. The positive improvement should not being distracted with such misleading opinions.

Just go for it, Garuda. I believe you can do it and become the one of the biggest airline companies in the world to bring you level with Singapore, Malaysia, Australia, Hong Kong and other big airline companies.

Benaiah Soenarto
Bandung

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