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Garuda to evaluate flights after posting losses in Q1
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A Garuda Indonesia aircraft departing from Hong Kong International Airport. (Shutterstock/File)
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tate-flag carrier Garuda Indonesia plans to evaluate some 20 domestic and international flights that contributed to the company’s losses in the first quarter of 2017, said Benny S. Butarbutar, Garuda’s vice president for corporate communications, in Jakarta on Tuesday.
The evaluation aims to improve short-term performance.
“We want to reduce costs and also increase revenues from Citilink,” Benny said as reported by kontan.co.id, referring to Garuda Indonesia’s subsidiary that offers low-cost flights.
In the first quarter of 2017, Garuda suffered US$89.49 million in losses. This was lower than the losses recorded in the first quarter of 2014, which reached $163.89 million.
Throughout 2014, the company recorded losses of $370.05 million.
In the first quarter of 2015 and 2016, the company booked $8.07 million and $74.48 million in profits, respectively.
The company blamed avtur price increases, weakening trends in the aviation business in the Asia-Pacific region and the economic slowdown for the company’s losses.
Benny said that apart from evaluating flights, Garuda also planned to push its charter flight business, particularly in China.
“The business is growing well in China. We need to gain a share of the market there,” he added.
The company is also eyeing the Middle East market, including flights for umrah pilgrimages, he added. (bbn)
