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Big Changes At Garuda  
User currently offline6thfreedom From Bermuda, joined Sep 2004, 3339 posts, RR: 20
Posted (9 years 9 months 1 week 2 days 9 hours ago) and read 1956 times:

HB-IWC.... are u able to comment on this?
Is this is a major change, and what effects will it have on GA's future plans?

Quote:

Indonesia Sacks Garuda Boss
March 17, 2005
Indonesia has sacked the head of troubled airline Garuda and replaced him with a former finance director in an effort to revitalize the state-owned flag carrier, a government minister said on Thursday.

Emirsyah Satar, vice president director of PT Bank Danamon, will take over as president and chief executive from Indra Setiawan, State Enterprise Minister Sugiharto said in Hong Kong.

The debt-laden airline has been beset by financial woes and a scandal surrounding the death of a prominent human rights activist on a flight to Amsterdam.

"The replacement is badly needed to revitalize Garuda," Sugiharto said.

Satar, who was Garuda's finance director before joining Danamon, said he had accepted the job.

"Last night Sugiharto called me and asked me to take the post. I told him that I need one or two weeks to study Garuda's current situation and then we can determine what we can do," Satar said in Jakarta. "I am ready to leave Danamon."

The airline has came under the spotlight following the death of leading Indonesian human rights activist, Munir, on a Garuda flight in September hours before it landed in Amsterdam. Dutch investigators said he died from arsenic poisoning.

"My decision has no link" to that incident, Sugiharto said.


5 replies: All unread, jump to last
 
User currently offlineB742 From United Kingdom, joined Mar 2005, 3768 posts, RR: 19
Reply 1, posted (9 years 9 months 1 week 2 days 9 hours ago) and read 1923 times:

Garuda really need to bring back some European routes!!!

Is there any major fleet plans for Garuda in the near future?


Rob!


User currently offlineMandala499 From Indonesia, joined Aug 2001, 6965 posts, RR: 76
Reply 2, posted (9 years 9 months 1 week 2 days 3 hours ago) and read 1743 times:

Garuda under Indra Setiawan is not seemed to be as cooperative as the creditors sees it. GA crews will hate me for this but the airline can deal with the huge debts better under bankers such as former CEOs Robby Djohan and Abdulgani... (New CEO was Finance Director under Robby Djohan).

Interestingly, Danamon's directors "tend to leave" for airlines lately...
1 went to Merpati as Finance Director, and Satar is likely to follow to Garuda.

The sentiment amongst financial analysts is that Garuda "has become boring" under Indra Setiawan and are reluctant to participate with the privatisation plans if he's the CEO. Although operationally sound, the momentum of improvement has seemed to stop. The report to the creditors last year was literally screwed up (if not content then its handling of it).

One trigger for Setiawan's "sacking" (his term is due anyways) is not the murder investigations but his handling of it. I saw the TV interview and he really screwed it up. He admitted administrative screw ups that could have enabled the murder conspiracy to happen.

Is there any major fleet plans for Garuda in the near future?
Errr, not likely in the next year or two unless the privatisation is miraculous.
Widebody capacity is needed in Asia first, then Europe... Don't expect Europe to happen until the 777s come, if they come that is...

Personally, I think it's good to see Setiawan go. Garuda's biggest worry at the moment is to maintain it's brand and improve the bottom line further, and not using the old school of thought brought up by directors whose career has been with Merpati and Garuda... I hope this gives fresh energy for GA to improve again.

As of future plans, it won't change much. Setiawan dreams of Garuda being big again without looking at what matters now!

Mandala499



When losing situational awareness, pray Cumulus Granitus isn't nearby !
User currently offlineHB-IWC From Indonesia, joined Sep 2000, 4516 posts, RR: 72
Reply 3, posted (9 years 9 months 1 week 2 days 3 hours ago) and read 1721 times:

I wouldn't expect anything major to happen to Garuda on the outside because of the management reshuffle. Management changes occur all the time here in Indonesia (for sure when a new government takes over), and this is just another round of them.

It is good to see though that some people with a strong finance background are brought back to senior management positions. The new CEO is essentially a banker, as were two of his more successful predecessors Abdulghani and Robby Djohan. I would expect him to do a better job in debt restructuring than did Indra Setiawan. Incidentally, Abdulghani is said to be returning to Garuda as its new President Commissioner and the new man at the helm, Emirsyah Satar, was Finance Director under Robby Djohan.

As I said, I don't believe we'll see a lot of implications externally. Garuda is steadily growing its operations, with a strong focus on domestic and regional travel. Any longhaul growth to Europe or a return to North America will have to wait until later. For the time being, it's just extra B737s and maybe an A330 or two.

As I see things, Garuda under Indra Setiawan dropped the ball on the quality control. I thought Abdulghani, with his 'Garuda Kini Lebih Baik' (Garuda Now Better than Before) slogan, did an excellent job in focusing on the reliability of Garuda. A year or two ago, Garuda's on time performace record was among the best in the world. Things have become a bit more sluggish under Indra Setiawan, and I hope the new management will refocus its attention on the quality and reliability of the entire Garuda experience, for sure when compared with the kind of service one can expect from some of the other players in the field here.

Quoting Mandala499 (Reply 2):
Widebody capacity is needed in Asia first, then Europe... Don't expect Europe to happen until the 777s come, if they come that is...

As an interesting side note, it is worth mentioning that at exactly the same time when the Garuda management reshuffle took place, Boeing Vice President for Asia is in town with a large delegation to talk about future aircraft deliveries (T7s and more B737s). I'll be sitting in on some meeting later this afternoon. Curious what comes out of it.


User currently offlineThe777Man From United States of America, joined Jul 1999, 6672 posts, RR: 55
Reply 4, posted (9 years 9 months 1 week 2 days ago) and read 1636 times:

It would be very interesting to hear what's said at your meeting, HB-IWC, if you can divulge the info.....

Thanks!

The777Man



Need a Boeing 777 Firing Order....Further to fly....CI, MU, LX and LH 777s
User currently offlineMandala499 From Indonesia, joined Aug 2001, 6965 posts, RR: 76
Reply 5, posted (9 years 9 months 1 week 1 day 23 hours ago) and read 1589 times:

As I see things, Garuda under Indra Setiawan dropped the ball on the quality control. I thought Abdulghani, with his 'Garuda Kini Lebih Baik' (Garuda Now Better than Before) slogan, did an excellent job in focusing on the reliability of Garuda. A year or two ago, Garuda's on time performace record was among the best in the world. Things have become a bit more sluggish under Indra Setiawan, and I hope the new management will refocus its attention on the quality and reliability of the entire Garuda experience, for sure when compared with the kind of service one can expect from some of the other players in the field here.


Some interesting notes from the past (Bankers) CEO... (Off my head, I dun have the original articles).

When Abdulgani was interviewed a couple of years back, after he completed the second stage of restructuring designed by Robby Djohan, he commented (or Robby Djohan commented, can't remember)... "Garuda is now (then) operationally the most profitable airline per kilometer flown in the world. But when you take in our debt burden, we go straight to the bottom of the heap. This is why until the debt is repaid, Garuda need to focus on its cashflow."

In 2003... "Our A330s are the highest utilized aircraft in Garuda. We won the Most Reliable A330 fleet in the world with a dispatch rate of 99.85%. They are our lifeblood to maintain our presence in Asia and Australiasia whilst keeping profitability. It is essential that this continues."

Robby Djohan 1999: "Garuda has become so bad that no one wants to fly us. If we are to remain as Indonesia's flag carrier and the leading domestic airline, we MUST win the customers back." When asked what is the major problem with Garuda that's causing passengers to choose other airlines... "Reliability and on-time performance."

During the time when the bankers ran GA...
- Creditors reports were ontime.
This is important given the debt situation! If GA wants to lease more planes, those creditors report need to go out on time! Something the current management has failed...

- Coherent fleet plan and adjustments were announced.
This is important for crew morale. Given the nature of the competitors who are expanding and quick seniority being offered by them, GA has lost a LOT of pilots to Air Asia, Etihad and local competitors. When asked why, most of the answers from the ones I know is lack of coherent fleet plan and no one knows what is going on about them. *Even Merpati knows better!*

A lot of the 737 crew are disappointed after the bids for NG ratings were opened (this was the end of 2003)... and they've heard nothing from the company since! It's demoralizing!

Glad the banking team is back...

Mandala499



When losing situational awareness, pray Cumulus Granitus isn't nearby !
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