Garuda Indonesia is seeking to expand its share of the domestic flight market to 39 percent by 2026 from 37 percent in 2021, its president director, Irfan Setiaputra, has informed.
“We hope that by optimizing (flight) routes we can improve our market share. But, of course, we are not turning a blind eye to the aggressiveness of competitors. What is important is that we must ensure that each flight route makes a profit and as a company, we make a profit,” he said.
Garuda Indonesia will focus on making a profit and will not merely serve many flights, have several types of planes, and win awards, he said during a hearing with Commission XI of the House of Representatives (DPR) in Jakarta on Monday.
The Garuda Group, which comprises Garuda and Citilink, is aiming to corner a 46-percent share of the domestic flight market in 2022.
The national flag carrier will also focus on profit-making international flight routes.
Meanwhile, Garuda Indonesia’s finance and risk management director, Prasetyo, said that the state capital participation (PMN) fund provided to the carrier will improve its liquidity and support the maintenance cost of planes.
“This PMN fund is also a part of a commitment we made while negotiating with lessors and creditors. The government’s commitment of Rp7.5 trillion became a condition precedent so that a homologation agreement could be signed last June,” he said.
Garuda Indonesia is also expected to contribute US$7.28 million to indirect taxes per year. “For the public, the PMN fund for Garuda Indonesia enables it to create more jobs and provide flight services,” he said.
Source: Antara News