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Garuda looks for 3rd CEO in 3 years

Posted: Mon Aug 26, 2019 2:11 am
by mercure1
Looks like the revolving door at GA corporate offices will continue as the company languishes in red ink.


JAKARTA -- Pressure is growing on national carrier Garuda Indonesia to dump its third chief executive in as many years as the airline has been left reeling from a bookkeeping scandal and stalled restructuring reforms.
Last month, Garuda was forced by regulators to correct its 2018 results to a $179 million net loss from an $800,000 profit, marking its second year in the red.
Ari Askhara, the airline's CEO, did not attend the July 26 news conference that announced the new results. But Fuad Rizal, director of finance and risk management, offered no apologies for the drastic disparity.
Amid the fallout, there is growing sentiment in Jakarta to replace Askhara and the rest of the leadership team over the scandal. This could happen when Indonesian President Joko Widodo, known as Jokowi, starts his second term in October.


Scandal-hit Garuda Indonesia weighs third CEO in three years
https://asia.nikkei.com/Business/Transp ... hree-years

Re: Garuda looks for 3rd CEO in 3 years

Posted: Mon Aug 26, 2019 2:18 am
by filipinoavgeek
Makes me wonder if they should just privatize GA; it seems keeping it in government hands is more trouble than it's worth and is preventing GA from being able to make proper decisions.

Re: Garuda looks for 3rd CEO in 3 years

Posted: Mon Aug 26, 2019 2:42 am
by eamondzhang
filipinoavgeek wrote:
Makes me wonder if they should just privatize GA; it seems keeping it in government hands is more trouble than it's worth and is preventing GA from being able to make proper decisions.

Being in South East Asia where corrupt is all over the place (except Singapore) I highly doubt this will happen anytime soon.

Michael

Re: Garuda looks for 3rd CEO in 3 years

Posted: Mon Aug 26, 2019 3:01 am
by filipinoavgeek
eamondzhang wrote:
filipinoavgeek wrote:
Makes me wonder if they should just privatize GA; it seems keeping it in government hands is more trouble than it's worth and is preventing GA from being able to make proper decisions.

Being in South East Asia where corrupt is all over the place (except Singapore) I highly doubt this will happen anytime soon.

Michael


PR was privatized long ago and VN is planning to partially privatize soon, so it's not like it can't happen.

Re: Garuda looks for 3rd CEO in 3 years

Posted: Mon Aug 26, 2019 5:13 am
by afterburner
filipinoavgeek wrote:
Makes me wonder if they should just privatize GA; it seems keeping it in government hands is more trouble than it's worth and is preventing GA from being able to make proper decisions.

For many Indonesians, privatization of state-owned companies is viewed as selling the country's assets. it's an unpatriotic act. The best thing the government can do is to make the company public but the government still holds the majority shares.

Re: Garuda looks for 3rd CEO in 3 years

Posted: Mon Aug 26, 2019 8:48 am
by ixam500
afterburner wrote:
filipinoavgeek wrote:
Makes me wonder if they should just privatize GA; it seems keeping it in government hands is more trouble than it's worth and is preventing GA from being able to make proper decisions.

For many Indonesians, privatization of state-owned companies is viewed as selling the country's assets. it's an unpatriotic act. The best thing the government can do is to make the company public but the government still holds the majority shares.


It is partially privatized, the Indonesian MOF only owns 60.51% .

Re: Garuda looks for 3rd CEO in 3 years

Posted: Mon Aug 26, 2019 9:37 am
by 346fetish
What are the main factors leading to such poor results at GA?

Re: Garuda looks for 3rd CEO in 3 years

Posted: Mon Aug 26, 2019 11:50 am
by afterburner
ixam500 wrote:
It is partially privatized, the Indonesian MOF only owns 60.51% .

I know. This is still acceptable. The state still own the majority of shares. Full privatization won't be acceptable.

Re: Garuda looks for 3rd CEO in 3 years

Posted: Mon Aug 26, 2019 3:25 pm
by spinotter
346fetish wrote:
What are the main factors leading to such poor results at GA?


Corruption and mismanagement!

Re: Garuda looks for 3rd CEO in 3 years

Posted: Mon Aug 26, 2019 3:25 pm
by SQ789
So who will be the possible new CEO when the current CEO resigns?

Re: Garuda looks for 3rd CEO in 3 years

Posted: Mon Aug 26, 2019 4:03 pm
by HP69
Garuda should really just be fully privatized to effectively compete with Lion Air.

Re: Garuda looks for 3rd CEO in 3 years

Posted: Mon Aug 26, 2019 4:16 pm
by afterburner
HP69 wrote:
Garuda should really just be fully privatized to effectively compete with Lion Air.

Lion Air is not Garuda's competitor. They have different markets. Batik Air (Lion Air's subsidiary full service carrier) is. However, Batik's network is still limited.

Re: Garuda looks for 3rd CEO in 3 years

Posted: Mon Aug 26, 2019 9:15 pm
by filipinoavgeek
afterburner wrote:
HP69 wrote:
Garuda should really just be fully privatized to effectively compete with Lion Air.

Lion Air is not Garuda's competitor. They have different markets. Batik Air (Lion Air's subsidiary full service carrier) is. However, Batik's network is still limited.

I know my comment is going to be really off-topic to this discussion, but that comment reminds me of CAPA's claim that the Philippine market is price sensitive, almost-always praising 5J and claiming their decisions are "sensible" while being more pessimistic of PR, despite the data showing that where PR struggles is not markets where it competes with 5J (where it's doing fine), but long-haul where it has to deal with East Asian carriers and the ME3.

Re: Garuda looks for 3rd CEO in 3 years

Posted: Mon Aug 26, 2019 11:54 pm
by SQ789
afterburner wrote:
HP69 wrote:
Garuda should really just be fully privatized to effectively compete with Lion Air.

Lion Air is not Garuda's competitor. They have different markets. Batik Air (Lion Air's subsidiary full service carrier) is. However, Batik's network is still limited.

Yeah. Batik although serve smaller of international routes but largely domestic.