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mercure1
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Garuda sacks CEO and majority of board

Fri Sep 14, 2018 5:46 am

National airline Garuda Indonesia on Wednesday sacked its chief executive whose cost-cutting measures drew strong resistance from the labor union and replaced him with an executive from another state-owned company.

Garuda, which is controlled by Indonesia's Ministry of State-Owned Enterprises, replaced Pahala Mansury with Askara Danadiputra, president of port operator Pelindo III, at a shareholders' meeting. Other executives were also reshuffled, leaving just two of Garuda's eight board seats unchanged.

Garuda reported a net loss of $116 million for the six months until June and expects ongoing losses in 2018 due to rising fuel prices and a weaker rupiah.

Garuda Indonesia to look at increasing profitable flying routes for new markets, including for Japan and China, and would renegotiate the company’s aircraft leases.


https://asia.nikkei.com/Business/Compan ... ered-union
http://atwonline.com/airlines/garuda-in ... -reshuffle



Its seems like the trio GA-MH-TG are always stuck in a pattern of endless restructuring.
mercure f-wtcc
 
777law
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Re: Garuda sacks CEO and majority of board

Fri Sep 14, 2018 6:00 am

I find this a bit surprising - I’ve flown GA a few times in the past month and have really been impressed with their soft and hard product. IMHO the food quality and service is starting to reach SQ levels. The losses are clearly a problem, but it seems like GA has solid foundation on which to bring itself into profitability. There is a lot going for GA at the moment. I hope the new management doesn’t change that.
If its not a Boeing I ain't going
 
JayBCNLON
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Re: Garuda sacks CEO and majority of board

Fri Sep 14, 2018 7:04 am

Don’t forget: GA is 5 star according to Skytrax. Quality should be up there with SQ‘s.
 
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afterburner
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Re: Garuda sacks CEO and majority of board

Fri Sep 14, 2018 7:45 am

He hasn't really lost a job. He's got a new job as the CFO of the state-owned petroleum company, Pertamina.
 
smi0006
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Re: Garuda sacks CEO and majority of board

Fri Sep 14, 2018 8:10 am

I think GA got a new wind when they updated their livery and brand, they’ve become stronger in the Australian market — then they got too keen/cocky and had the mess with 77W flying to AMS-LGW, then LHR via SIN with F.... (I think that was the correct London airports)

GA has enormous potential, but CGK is a mess, and I personally feel the 77W is too big for many routes. I don’t think they know where to send them, as they are headed to MEL next which seems like over capacity.

Be good to see them to start to expand internationally beyond DPS, CKG over the next 5-10years as the Indonesian secondary market develops more, again requiring smaller aircraft. I’d personally look to get rid of the 77W and revisit longhaul expansion with 789
 
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CARST
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Re: Garuda sacks CEO and majority of board

Fri Sep 14, 2018 9:08 am

JayBCNLON wrote:
Don’t forget: GA is 5 star according to Skytrax. Quality should be up there with SQ‘s.


LoL !!!!!

Please stop EVER referring to Skytrax in a serious discussion about airline quality. Everyone knows it's a bribe and pay-for-your-rating system with "a few" logical constraints to make it look non-faked.

mercure1 wrote:
National airline Garuda Indonesia on Wednesday sacked its chief executive whose cost-cutting measures drew strong resistance from the labor union and replaced him with an executive from another state-owned company.

Garuda, which is controlled by Indonesia's Ministry of State-Owned Enterprises, replaced Pahala Mansury with Askara Danadiputra, president of port operator Pelindo III, at a shareholders' meeting. Other executives were also reshuffled, leaving just two of Garuda's eight board seats unchanged.


State owned airlines, where the states actually controls the airline. Is there anything to add?

Kicking out your CEO is one thing, but getting rid of most of the board of directors, that's insane. Most companies don't survive such a drastic change in management. Of course Garuda will survive as all losses are paid by the tax-payer. Oh my...
 
moa999
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Re: Garuda sacks CEO and majority of board

Fri Sep 14, 2018 12:04 pm

They've also got substantial competition from Lion/Batik/Malindo and Air Asia India and Malaysia
 
trent768
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Re: Garuda sacks CEO and majority of board

Fri Sep 14, 2018 12:48 pm

I personally agree that the old Management were to cocky and naive when they ordered the 77W. They were looking for a 1-1 replacement (capacity wise) for the 3 747s which were used on the Saudi routes and ended up ordering 10 77W. This creates a trouble since they didn't actually needs or able to fill the capacity of the other 7. I don't even think that they were too eager either to sell those huge belly space, which is one reason why most airline ordered the 77W in the first place.

I think it would be much better if they ordered 789 instead for their European network, since it's easier to fill without having to throw the yield down the toilet and fly those Saudi routes with the newer A333 in a high density config.
 
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LAXintl
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Re: Garuda sacks CEO and majority of board

Fri Sep 14, 2018 3:21 pm

Seems GA swings from one drama to another rather frequently these last few years.

While there is so much opportunity in Indonesia, GA seemingly has not figured out to harness it. Certainly, inept government intervention continues to harms chances of success.

Sadly the market is getting ever more competitive as AirAsia, Lion Air continues to grow. Even GA's pseudo-LCC Citilink positioning is changing with the addition of growing international flying to places like China which would previously have been meant for GA to operate.

trent768 wrote:
I think it would be much better if they ordered 789 instead for their European network, since it's easier to fill without having to throw the yield down the toilet and fly those Saudi routes with the newer A333 in a high density config.


They did commit to 30 in 787-9s in 2015. They also then committed to the A359, but neither order was firmed.

https://www.reuters.com/article/us-airs ... QY20150615
From the desert to the sea, to all of Southern California
 
NZ321
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Re: Garuda sacks CEO and majority of board

Fri Sep 14, 2018 3:22 pm

Garuda is an interesting beast. I don't doubt the intention in the reshuffle but will believe the intent when I see it in action. Much the same at MH. I have flown them a number of times and most times it has been... lacking. The last, 2 years ago. Since then, I can't summon up the courage any more to fork out for a GA flight. I opt for SQ, MH, TG, AK, MI over Garuda.
Plane mad!
 
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UPlog
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Re: Garuda sacks CEO and majority of board

Fri Sep 14, 2018 5:54 pm

Have to say I got to enjoy GA first class seat(with business service) on a short hop from SIN couple years back. Yes it was an excellent product but it seemed to me being a vanity product nor one that really sold consistently. I have also found my GA experience being rather unbalanced. From appalling experience(especially on the ground) to rather solid experience.
 
trent768
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Re: Garuda sacks CEO and majority of board

Fri Sep 14, 2018 9:47 pm

LAXintl wrote:
They did commit to 30 in 787-9s in 2015. They also then committed to the A359, but neither order was firmed.

https://www.reuters.com/article/us-airs ... QY20150615

I mean from the beginning, because they were supposed to get some 7E7 (yes, it was so ancient because it was a converted 772 order) but they changed it again into 77W.

I think the newer one you mentioned was sacked due to the poor financial performance and this bone head ex-minister who speaks loudly to the media that GA should ditch their wide bodies and became a domestic carrier instead. The political year in 2019 is not going to help either, since the opposition keeps using this 'all state-owned enterprise are being sold to the foreigners' fake news as their campaign to gain power. That's why no capable, neutral, and clean expat will be able to be the CEO and stop the cancerous 'state-owned enterprise' culture that has been haunting GA since forever. Their union also smells a bit fishy and also has some internal political motive all around it.

I still wishing the best for them with this new CEO though and hoping to fly back home this Christmas with them via AMS.
 
ewt340
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Re: Garuda sacks CEO and majority of board

Thu Sep 20, 2018 4:26 pm

Honestly, GA is such a mess.
There is a few big factors why GA became the sick child of Southeast Asia despite have the direct access to the most populous country in that region.

1. Majority of Indonesian are not rich. Most Indonesian can't afford to fly business class, many could only fly now thanks to the cheap ticket from LCC like Lion air, Air Asia, or Citilink.
2. With the lack of premium customers, it's hard for GA to increase their profit because most Traditional Full Service Airlines make most of their profits from premium classes. Logically speaking, since they can't fill enough premium seat, they should have gone with smaller aircraft like B787-8, B787-9 or A350-900 instead of B777-300ER.
3. Not enough International destinations compared to SQ, MH, TG, or any other airlines around the areas.
4. Ticket prices for domestic flights is too Expensive for most people, but services are not as good as SQ.
5. Many problems with their main hub in CGK. Terminal 3 only completed this year. Heavy congestions make transit passengers avoid CGK and go for Singapore Changi, Kuala Lumpur or Bangkok.
 
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janders
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Re: Garuda sacks CEO and majority of board

Fri Oct 05, 2018 4:55 pm

Story with new CEO.

Says carriers number one priority is... "an increase in employee happiness" :scratchchin:
The main focus of the new management is an increase in employee happiness. Making employees happy will improve customer service, he said. “Human capital transformation is how we will make our employees happy so that they can deliver best service to customers.”

A business priority is to renegotiate aircraft leases:

He intends to renegotiate the company`s aircraft leasing contracts, which his predecessor also said were a management priority. “The aircraft leasing contracts will definitely be renegotiated with the lessor. We will renegotiate, especially to extend the leasing period of the medium- and large aircraft contracts so the monthly rates will be lower.”

Meanwhile, carrier finances are strained.

Garuda’s stock price has fallen to a record low and now has a market capitalization of around $370 million, making it one of the least valuable airlines in Asia. The carrier’s financial performance has been volatile for years. The leadership must face the turbulent economic conditions, starting from the depreciated rupiah to rising oil prices.
The flag carrier faces cutthroat competition for passengers from LCCs such as AirAsia, regional carriers and Gulf airilnes. Long haul LCCs will soon be a larger sector in the competitive mix.


http://www.orientaviation.com/articles/ ... ri-removed
"We make war that we may live in peace." -- Aristotle
 
Planeflyer
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Re: Garuda sacks CEO and majority of board

Fri Oct 05, 2018 7:16 pm

Why does the state even support GA anymore? I mean between lion air and air Asia it’s like Indonesia would go wo air service.

I guess the free flights are costing the taxpayers dearly
 
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GlobalAirways
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Re: Garuda sacks CEO and majority of board

Fri Oct 05, 2018 8:00 pm

CARST wrote:
JayBCNLON wrote:
Don’t forget: GA is 5 star according to Skytrax. Quality should be up there with SQ‘s.


LoL !!!!!

Please stop EVER referring to Skytrax in a serious discussion about airline quality. Everyone knows it's a bribe and pay-for-your-rating system with "a few" logical constraints to make it look non-faked.

mercure1 wrote:
National airline Garuda Indonesia on Wednesday sacked its chief executive whose cost-cutting measures drew strong resistance from the labor union and replaced him with an executive from another state-owned company.

Garuda, which is controlled by Indonesia's Ministry of State-Owned Enterprises, replaced Pahala Mansury with Askara Danadiputra, president of port operator Pelindo III, at a shareholders' meeting. Other executives were also reshuffled, leaving just two of Garuda's eight board seats unchanged.


State owned airlines, where the states actually controls the airline. Is there anything to add?

Kicking out your CEO is one thing, but getting rid of most of the board of directors, that's insane. Most companies don't survive such a drastic change in management. Of course Garuda will survive as all losses are paid by the tax-payer. Oh my...



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ewt340
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Re: Garuda sacks CEO and majority of board

Sat Oct 06, 2018 8:29 pm

Time to kill Garuda Indonesia.
Meanwhile, expand Citilink instead because it have better propect in the future.

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