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Garuda teams up with Cardig in cargo business
Plane dealing: National flag carrier Garuda Indonesia president director Arif Wibowo (left) and cargo aviation firm Cardig Air president director Boyke P
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Plane dealing: National flag carrier Garuda Indonesia president director Arif Wibowo (left) and cargo aviation firm Cardig Air president director Boyke P. Soebroto (right) hold model planes as Cardig president commissioner Moekhlas Sidik (second left) and Garuda managing director Iwan Joeniarto look on after the two firms signed a memorandum of understanding on Friday in Tangerang, Banten. The two companies have agreed to collaborate in boosting cargo services through development of goods distribution networks and market access.(Antara/Lucky R.) (left) and cargo aviation firm Cardig Air president director Boyke P. Soebroto (right) hold model planes as Cardig president commissioner Moekhlas Sidik (second left) and Garuda managing director Iwan Joeniarto look on after the two firms signed a memorandum of understanding on Friday in Tangerang, Banten. The two companies have agreed to collaborate in boosting cargo services through development of goods distribution networks and market access.(Antara/Lucky R.)
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span class="inline inline-center">Plane dealing: National flag carrier Garuda Indonesia president director Arif Wibowo (left) and cargo aviation firm Cardig Air president director Boyke P. Soebroto (right) hold model planes as Cardig president commissioner Moekhlas Sidik (second left) and Garuda managing director Iwan Joeniarto look on after the two firms signed a memorandum of understanding on Friday in Tangerang, Banten. The two companies have agreed to collaborate in boosting cargo services through development of goods distribution networks and market access.(Antara/Lucky R.)
National flag carrier Garuda Indonesia signed a partnership agreement on Friday with cargo airline Cardig Air, where both carriers will benefit from joint marketing and promotion of freight routes operated by the two carriers.
During the initial stage of cooperation that will take effect in July, Garuda will have the rights to sell freight space aboard Cardig Air flights that serve routes to Surabaya, East Java, Denpasar, Bali, and Dili in Timor Leste.
Meanwhile, Cardig Air, will have the rights to market Garuda's cargo space on several domestic and international routes.
Garuda Indonesia president director Arif Wibowo said the carrier expected to book US$300 million in cargo revenue this year, up 12 percent from last year.
The business partnership with Cardig Air is expected to contribute $10 million in projected cargo revenues. 'In the future we will continue to extend the cooperation with Cardig Air to expand our domestic and international cargo route network,' Arif said.
According to the International Air Transport Association (IATA), Asia-Pacific freight carriers reported demand growth of 4.5 percent year-on-year in April, this year, which is below the capacity expansion of 7 percent.
Current trade volume for emerging Asia markets was down 10 percent, and the region had been affected by a slowdown in exports to Europe, IATA said.
The slower demand growth is reflected in Garuda's financial report released to the Indonesian Stock Exchange, which shows that the firm's cargo revenue amounted to $47.79 million during the first quarter of this year, down by 5.08 percent from $50.35 million in the same period last year.
In 2014, the carrier recorded $218.46 million in cargo revenue, an increase of 11.48 percent as compared to $155.9 million in 2013.
Arif said that 60 percent of the cargo revenues derived from the domestic market, while the remaining 40 percent came from the international market mainly in China, South Korea and Japan.
Garuda Indonesia Cargo currently operates around 70 cargo service centers across the archipelago, including in Medan, Jambi, Jakarta, Bandung, Yogyakarta, Surakarta, Semarang, Surabaya and Denpasar.
CEO Cardig Air Boyke P. Soebroto separately said that the carrier transported a total of 6,000 tons of cargo with a value of around $20 million last year.
The cooperation with Garuda was expected to help Cardig achieve its target of booking 10,000 tons of cargo with a value of $30 million this year, Boyke said.
'This cooperation will benefit us since Garuda has an extended route network and a market that is spread across 76 cities in the country, which will support Cardig's development plan in the future,' Boyke said.
Boyke said that Cardig would remain focused on expanding its segmented routes, including Papua, Timor Leste and southern Philippines.
