Moderators: jsumali2, richierich, ua900, PanAm_DC10, hOMSaR

 
User avatar
LAXintl
Topic Author
Posts: 24711
Joined: Wed May 24, 2000 12:12 pm

Garuda Sees Large Loss; Plans Route Adjustments

Mon Mar 23, 2015 7:08 pm

Garuda Indonesia posted its 2014 numbers with a net loss of over US$373 million, a significant negative turnaround from the net profit of nearly $10.8 million it reported in 2013.

Despite 15% growth in in enplanements, the carrier attributed the loss to intense competition in the region, weakness of the rupiah and higher operating cost.

Carriers CEO says the airline will downward adjust services to Australia and Japan as well as delay previously announced new routes such as Nagoya.

The carrier continues to instead explore alternate strong demand markets in Middle East and Asia including the growing Umrah market to Saudi Arabia and three new service points in China of Chengdu, Chongqing and Ningbo.


Flag-carrier plunges into the red
http://asia.nikkei.com/Business/AC/Flag-carrier-plunges-into-the-red
and
http://www.thejakartapost.com/news/2...espite-booking-373m-loss-2014.html

=

Rapid growth with arrival of 35 shiny new expensive aircraft and new routes to places like Europe certainly did not help GA finances in the last year.
Maybe they need to put the breaks on and focus on the basics.
Seems like its a few steps forward, and then a few steps backwards for GA again.
From the desert to the sea, to all of Southern California
 
User avatar
TedToToe
Posts: 627
Joined: Mon Dec 08, 2014 11:43 pm

RE: Garuda Sees Large Loss; Plans Route Adjustments

Mon Mar 23, 2015 8:00 pm

Does anybody have any passenger numbers for the AMS-LGW tag on? Not directly an indicator of yields/profitability but if the numbers are low, could this be a route that is discontinued?
 
anstar
Posts: 3291
Joined: Sun Nov 23, 2003 3:49 am

RE: Garuda Sees Large Loss; Plans Route Adjustments

Mon Mar 23, 2015 8:14 pm

Quoting TedToToe (Reply 1):
Does anybody have any passenger numbers for the AMS-LGW tag on? Not directly an indicator of yields/profitability but if the numbers are low, could this be a route that is discontinued?

I've flown about 6 sectors and it has always been pretty busy in economy with a handful of people in business and never anyone in F. I'd say around 50% of the Y pax on each of my sectors were dutch and only doing AMS-LGW-AMS.

I think the 77W has too many J seats, and not dense enough in Y.... 3-3-3 whereas it could have been 3-4-3 like most other 77W operators. Also the Y seats have foot rests which add weight and to be honest I found annoying as it restricted the leg space.
 
usflyer msp
Posts: 3857
Joined: Tue May 23, 2000 11:50 am

RE: Garuda Sees Large Loss; Plans Route Adjustments

Mon Mar 23, 2015 8:18 pm

I flew KUL-CGK on GA earlier this year for US $29 including 30kg of baggage and a meal. They cannot be making money with fares like that...
 
User avatar
mercure1
Posts: 4850
Joined: Sun Jul 13, 2008 5:13 am

RE: Garuda Sees Large Loss; Plans Route Adjustments

Mon Mar 23, 2015 9:35 pm

Maybe Garuda, Thai and Malaysian need to jointly fund someone to come up with serious new business plans for them.

Of course removing government interference in ongoing affairs of the airline enterprise probably key factor also.
mercure f-wtcc
 
Chaostheory
Posts: 1156
Joined: Wed Mar 06, 2013 2:09 am

RE: Garuda Sees Large Loss; Plans Route Adjustments

Mon Mar 23, 2015 10:25 pm

Quoting anstar (Reply 2):
I've flown about 6 sectors and it has always been pretty busy in economy with a handful of people in business and never anyone in F. I'd say around 50% of the Y pax on each of my sectors were dutch and only doing AMS-LGW-AMS.

I'm surprised they don't just ditch the LGW tag on.

The obvious thing to do would be to rely on code shares beyond AMS with KLM, particularly for the UK where KLM has an extensive network.

Perhaps they could look at swapping some 737s and 777 delivery slots for the 787-9 too.
 
DDR
Posts: 1732
Joined: Sat Sep 28, 2013 11:09 pm

RE: Garuda Sees Large Loss; Plans Route Adjustments

Mon Mar 23, 2015 11:01 pm

Not every country needs their own airline. Or maybe they should just focus on domestic routes.
 
AFGMEL
Posts: 190
Joined: Wed Jul 18, 2007 8:39 am

RE: Garuda Sees Large Loss; Plans Route Adjustments

Mon Mar 23, 2015 11:26 pm

Quoting DDR (Reply 6):
Not every country needs their own airline

You'd think that a country with 250 million people would have a large airline though.
B 727-44/200 732/3/4/8/9 767-3 742/3/4, 772/3, A319/20/21 332/333 342/3 , DC3/4/10, F28/50/100, ATR72
 
lutfi
Posts: 888
Joined: Wed Sep 27, 2000 6:33 pm

RE: Garuda Sees Large Loss; Plans Route Adjustments

Tue Mar 24, 2015 1:00 am

They do. It is called Lion Air...
 
ORDJOE
Posts: 682
Joined: Wed Aug 11, 2010 2:27 am

RE: Garuda Sees Large Loss; Plans Route Adjustments

Tue Mar 24, 2015 2:29 am

How well does F do. First class is a rough enough proposition for many markets. Many airlines are pulling it all together or cutting it back while GA bucked the trend and started to offer it. CGK just does not seem like a market that will get the clientele for that kind of thing and its large J cabin. That set up is more becoming for SIN, HKG or NRT not Jakarta.
 
asetiadi
Posts: 233
Joined: Wed May 15, 2013 5:05 pm

RE: Garuda Sees Large Loss; Plans Route Adjustments

Tue Mar 24, 2015 5:07 am

Garuda Indonesia is a young 5 stars airlines, give them some time and they will be fine.

As Garuda frequent flyers, I don't see any negative issue with them. And as a state official carrier, they will keep their F class product for prestige purpose.

Their domestic routes are mostly full flights in Y-class, hardly I see them empty. More and more people switch to Garuda for safety and comfort vs low cheap unstable airlines like Lion, etc.

I would say the weakness of Rupiah contributes large factor for loss profit.

My only concern with Garuda is even thou they are in the group of 5 stars airlines, they must reduce their J and F class fares. I mean it takes time to built your name to be among top elite. People will tend to fly with CX and SQ for the same amount of J-Class Fares. Also using 1-2-1 configuration for their J Class are a bit killing. They should have stick with 2-2-2 configuration full lie beds, therefore they can see the fares with more attractive price. Let 1-2-1 for F Class only. They should also reduce C-Class fares on their domestic routes. I feel they are way bit too expensive. 1 hour flight C-class return ticket could cost $700 per pax.

If Garuda can fix / solve somehow their premium product issues, they should be back on track.
 
MaverickM11
Posts: 18199
Joined: Thu Apr 06, 2000 1:59 pm

RE: Garuda Sees Large Loss; Plans Route Adjustments

Tue Mar 24, 2015 6:24 am

Quoting ChaosTheory (Reply 5):
I'm surprised they don't just ditch the LGW tag on.

And the AMSCGK tag too   That's probably $50M right there...
I don't take responsibility at all
 
infinit
Posts: 1058
Joined: Thu Jul 31, 2008 1:12 am

RE: Garuda Sees Large Loss; Plans Route Adjustments

Tue Mar 24, 2015 6:49 am

Quoting asetiadi (Reply 10):

Garuda Indonesia is a young 5 stars airlines, give them some time and they will be fine.

As Garuda frequent flyers, I don't see any negative issue with them. And as a state official carrier, they will keep their F class product for prestige purpose.

Their domestic routes are mostly full flights in Y-class, hardly I see them empty. More and more people switch to Garuda for safety and comfort vs low cheap unstable airlines like Lion, etc.

I would say the weakness of Rupiah contributes large factor for loss profit.

My only concern with Garuda is even thou they are in the group of 5 stars airlines, they must reduce their J and F class fares. I mean it takes time to built your name to be among top elite. People will tend to fly with CX and SQ for the same amount of J-Class Fares. Also using 1-2-1 configuration for their J Class are a bit killing. They should have stick with 2-2-2 configuration full lie beds, therefore they can see the fares with more attractive price. Let 1-2-1 for F Class only. They should also reduce C-Class fares on their domestic routes. I feel they are way bit too expensive. 1 hour flight C-class return ticket could cost $700 per pax.

If Garuda can fix / solve somehow their premium product issues, they should be back on track

Same sentiments. They've definitely been hit by the weak Rupiah. Also agreed that they should have done away with F, and have a solid 2-2-2 J product instead.

From the looks of it, they're benchmarking themselves against SQ which is not the right model, Singapore being a city-state with a big financial market. They should be following the model of NZ instead if you ask me. NZ is a great airline but doesn't offer F. They innovated by offering a Premium Economy and "Skycouch"

The fact that SIN sits right in the middle of Indonesia makes it harder too. SQ and Silkair's most numerous flights are to Indonesian cities. SQ has been pulling many wealthy Indonesians to connect in SIN rather than CGK
 
factsonly
Posts: 2979
Joined: Mon Aug 06, 2012 3:08 pm

RE: Garuda Sees Large Loss; Plans Route Adjustments

Tue Mar 24, 2015 7:42 am

Quoting TedToToe (Reply 1):
Does anybody have any passenger numbers for the AMS-LGW tag on?

For the month of February 2015:

- GATWICK - JAKARTA (SOEKARNO-HATTA INTNL) 3.921 passengers.

Flight operated 4x/week out/return, so about 32 sectors/month = average 123 passengers for LGW-CGK

Quoting anstar (Reply 2):
I'd say around 50% of the Y pax on each of my sectors were dutch and only doing AMS-LGW-AMS.

If this were true than 123 pax x 2 = 246 passengers on LGW-AMS-LGW in February 2015.
 
lutfi
Posts: 888
Joined: Wed Sep 27, 2000 6:33 pm

RE: Garuda Sees Large Loss; Plans Route Adjustments

Tue Mar 24, 2015 8:27 am

I think Garuda is caught by needing two different strategies domestic & Int'l, a bit like QF and ANZ are/ were.

Domestic positioning is as the "luxury" full service airline, under massive competition from LCC. Have an LCC (citilink) to compete

Int'l positioning, they went for the luxury full service niche, but get swamped by the ME3 & SQ/CX, Would be better off & going the "mid market" route of ANZ, especially as much of their int'l traffic is workers to Middle East, or inbond tourists to Bali. Neither care much about world's best first class.
 
User avatar
eta unknown
Posts: 2858
Joined: Wed Jun 13, 2001 5:03 am

RE: Garuda Sees Large Loss; Plans Route Adjustments

Tue Mar 24, 2015 8:37 am

F class is only being maintained to preserve their 5 star status- the 3 upcoming 777-300's to be delivered will just have business/economy.
If you saw the low aircraft utilisation rate for the A330/777 fleet you would see why they are in the red- plus they only hedge 10% of fuel
If senior GA management had the chance, they would drop every international route and just be a domestic airline- that's their bread and butter.
Some newly appointed board members have no airline experience- also a worry.

The 737's will be re-configured this year: 12 business class seats will be reduced to 8 and more economy class installed.

New routes: Medina and second (third?) tier China cities. CDG, FRA, Berlin also being looked- the German options just crazy. Ditto developing Manado.
AMS to go daily later tis year- the LGW tag ons are still a mystery (these most likely wont be daily).

As long as GA is majority Govt. owned the lunacy will continue.
 
lutfi
Posts: 888
Joined: Wed Sep 27, 2000 6:33 pm

RE: Garuda Sees Large Loss; Plans Route Adjustments

Tue Mar 24, 2015 9:22 am

From their investor relations website, profitable routes are:

Jakarta - Surabaya
Jakarta - Medan
Jakarta - Balikpapan

Jakarta- Singapore
Jakarta-Bangkok
Jakarta-Jeddah.

That is not a long list, no wonder they lost 357m USD!
 
User avatar
mercure1
Posts: 4850
Joined: Sun Jul 13, 2008 5:13 am

RE: Garuda Sees Large Loss; Plans Route Adjustments

Tue Mar 24, 2015 2:54 pm

I think issue that comes apparent with GA is whether its meant to be a for profit enterprise or a government agency?

Like some of its other SE Asian competitors mixing the two create negative results.

If its profit they seek, then they must very strongly counter the significant domestic and regional LCC presence and as mentioned in the international area move away from needless 3-class product to a more humble suitable 2-class product while ditching historic loss making markets and forgetting chasing after prestige routes.



Quoting lutfi (Reply 16):
From their investor relations website, profitable routes are:

 Wow!
mercure f-wtcc
 
jfk777
Posts: 7366
Joined: Tue Aug 22, 2006 7:23 am

RE: Garuda Sees Large Loss; Plans Route Adjustments

Wed Mar 25, 2015 12:50 am

Garuda's 77W is 8F / 42J /268 Y, why 8 First Class suites when 4 would do. 42 J is not too many for a 77W.
Garuda would be wise to explore a Premium Y class.
 
IndianicWorld
Posts: 3388
Joined: Mon Jun 04, 2001 11:32 am

RE: Garuda Sees Large Loss; Plans Route Adjustments

Wed Mar 25, 2015 1:16 am

Quoting jfk777 (Reply 18):
Garuda's 77W is 8F / 42J /268 Y, why 8 First Class suites when 4 would do. 42 J is not too many for a 77W.
Garuda would be wise to explore a Premium Y class.

Why have F at all? Most have thought this is a mistake from the start.

It really does need to re-evaluate its configuration immediately, as this is likely having a significant effect on its bottom line.

Quoting lutfi (Reply 16):
From their investor relations website, profitable routes are:

Jakarta - Surabaya
Jakarta - Medan
Jakarta - Balikpapan

Jakarta- Singapore
Jakarta-Bangkok
Jakarta-Jeddah.

That's it? That's scary really.
 
kiwiandrew

RE: Garuda Sees Large Loss; Plans Route Adjustments

Wed Mar 25, 2015 1:26 am

Quoting lutfi (Reply 16):
From their investor relations website, profitable routes are:

Jakarta - Surabaya
Jakarta - Medan
Jakarta - Balikpapan

Given the amount of LCC competition now in Indonesia it seems ( to me, at least) surprising that these routes are apparently amongst the very few profitable sectors in the network.
 
laca773
Posts: 2081
Joined: Sat Nov 06, 2004 7:10 am

RE: Garuda Sees Large Loss; Plans Route Adjustments

Wed Mar 25, 2015 1:45 am

Quoting mercure1 (Reply 4):
Maybe Garuda, Thai and Malaysian need to jointly fund someone to come up with serious new business plans for them.

Of course removing government interference in ongoing affairs of the airline enterprise probably key factor also.
Quoting ChaosTheory (Reply 5):
Perhaps they could look at swapping some 737s and 777 delivery slots for the 787-9 too.

Isn't the 77W overkill for GA? Wouldn't they be better with a small sub-fleet of 787-8/9s for long haul? Maybe they can work something out with Boeing? Are they expecting any further deliveries of 77Ws?

If there wasn't such a huge government interference, combining Malaysian, Garuda and even Thai possibly into one would be a interesting idea. The LCC's in this region are hurting the legacy carriers a lot, while at the same time, they haven't been realistic with the service they provide, aircraft utilized, and etc...

I can see GA keeping AMS. It's a large Sky Team Hub. They need to utilize and work on JVs with KL/AF. This will help them in the long run.
 
usflyer msp
Posts: 3857
Joined: Tue May 23, 2000 11:50 am

RE: Garuda Sees Large Loss; Plans Route Adjustments

Wed Mar 25, 2015 1:46 am

-They should turn most domestic routes and certain hyper-competitive regional routes under three hours over to Citilink.
-They should actually encourage international transit passengers by automatically transferring bags between flights (I was shocked GA did not do that last time I was in CGK, all the bags came out on the belt)
-Get rid of F and improve C.
-Cut LGW
 
Byrdluvs747
Posts: 2540
Joined: Thu Jul 15, 2004 5:25 am

RE: Garuda Sees Large Loss; Plans Route Adjustments

Wed Mar 25, 2015 3:57 am

Quoting laca773 (Reply 21):
If there wasn't such a huge government interference, combining Malaysian, Garuda.... possibly into one would be a interesting idea.

Only if the combined carrier remains in Oneworld and not skyteam.
The 747: The hands who designed it were guided by god.
 
User avatar
eta unknown
Posts: 2858
Joined: Wed Jun 13, 2001 5:03 am

RE: Garuda Sees Large Loss; Plans Route Adjustments

Wed Mar 25, 2015 7:16 am

Quoting USFlyer MSP (Reply 22):
They should turn most domestic routes and certain hyper-competitive regional routes under three hours over to Citilink.

Unfortunately, Citilink is also a basket case and had to be bailed out by GA last month.. And Citilink is the current GA CEO's baby, se we can't lose face, ya know?
On top of the LCC woes, lots of people avoid Lion Air- their reputation in Indo is extremely bad.

F class will not go away unless GA wants to relinquish their 5 star status- it's actually a Skytrax requirement.
C doesn't need improving- product is very good. Even the Y class product is good.
However, there are 2 negative aspects:
a) in-flight entertainment- GA doesn't want to spend the money to buy the latest releases. Movie choices are poor.
b) transit experiences in crap Indo airports, but this is outside GA's control. Unlike SIN where the airport authority, SQ, and the Govt work together, no such collaboration exists in Indo.

Quoting jfk777 (Reply 18):
Garuda's 77W is 8F / 42J /268 Y, why 8 First Class suites when 4 would do

Aircraft were delivered under previous Govt. Where do you expect the plethora of jumped-up Govt. officials from across the archipelago to sit?!? However, now they must fly economy, hence the domestic re-configuration.

Quoting jfk777 (Reply 18):
Garuda would be wise to explore a Premium Y class

Already examined and rejected.

Quoting mercure1 (Reply 17):
I think issue that comes apparent with GA is whether its meant to be a for profit enterprise or a government agency?

For media purposes they act for profit, operationally it's one big Govt. sink hole. Non performers aren't fired, they are re-assigned to go screw up another station or dept.
 
IndianicWorld
Posts: 3388
Joined: Mon Jun 04, 2001 11:32 am

RE: Garuda Sees Large Loss; Plans Route Adjustments

Wed Mar 25, 2015 7:42 am

Quoting eta unknown (Reply 24):
F class will not go away unless GA wants to relinquish their 5 star status- it's actually a Skytrax requirement.

Who cares about such things really? If an airline is trying to claim status over profit/sustainability good luck to them.

First and foremost, airlines need to deliver what people willing to pay for. In today's aviation environment, F class is not exactly something that should be at the top of the list of priorities for airlines, especially ones that are struggling.

Quoting eta unknown (Reply 24):
And Citilink is the current GA CEO's baby, se we can't lose face, ya know?

Well he better find a way to make it work then.

Quoting eta unknown (Reply 24):
On top of the LCC woes, lots of people avoid Lion Air- their reputation in Indo is extremely bad.

Still hasn't stopped them growing.

That's the one amazing thing about reputation and the aviation industry, most of the general population don't really know anything about who they choose to fly, its usually based on the price and other considerations tend to take a back seat.

If reputation counted for much, airlines like Ryanair would never have lasted this long, let alone thrived.
 
mandala499
Posts: 6593
Joined: Wed Aug 29, 2001 8:47 pm

RE: Garuda Sees Large Loss; Plans Route Adjustments

Wed Mar 25, 2015 8:12 am

373 million dollar loss?
Nothing surprising there. For one, I am happy former CEO Emirsyah Satar is gone. After his quantum leap turnaround, Garuda simply "lost the plot" in the pursuit of service and recognition at all costs.

F is a disaster, and the rest of the 777 operations were too. They simply don't have enough seats on it.

The LGW tag on, is just ridiculous.
AMS direct is very costly. The previous CGK-AMS-DXB was a disaster, but CGK-AUH-AMS was doing better, as Etihad codeshare was doing wonders to the loads.

KLM has been serving CGK for years on end, and they don't go non-stop to Jakarta, for a reason... a reason that Garuda decided to "ignore".

Quoting ORDJOE (Reply 9):
CGK just does not seem like a market that will get the clientele for that kind of thing and its large J cabin.

Those who want to fly F, goes on other airlines... or just simply hire a private jet whenever they go in a group.

Quoting asetiadi (Reply 10):
Garuda Indonesia is a young 5 stars airlines, give them some time and they will be fine.

Give them some time? You want to continue fund these losses through your tax money? Give them some time to what? Lose more money?

Quoting asetiadi (Reply 10):
As Garuda frequent flyers, I don't see any negative issue with them. And as a state official carrier, they will keep their F class product for prestige purpose.

Last year I started flying Garuda again, and... stopped... and went back to flying LCCs. Sorry, the service is just facepalm quality.

Quoting asetiadi (Reply 10):
Their domestic routes are mostly full flights in Y-class, hardly I see them empty. More and more people switch to Garuda for safety and comfort vs low cheap unstable airlines like Lion, etc.

Full thanks to the government saying "no more business class travel" for government officials.
Guess what, when they're not up to flying economy in Garuda, they hire a bizjet to fly them around... LOL! And some, decided to fly Citilink instead.

Quoting asetiadi (Reply 10):
I would say the weakness of Rupiah contributes large factor for loss profit.

It's not the Rupiah, it's the government (current and previous)

Rupiah has declined over 30% since 2013, airlines have a maximum fare they can charge for domestic routes, and that limit has only gone up 20%, and now as an additional blow, the government is imposing a minimum fare of 40% the maximum allowed fare. So now you can't charge low enough in low season, and you can't charge high enough in high season. It is estimated that every scheduled airline in Indonesia in 2015 will lose money.

Let's not forget that in 2014 there were landing fees and parking fees hike of 100% or more by the airports, and then a 300% hike in navigation fees, etc...

Quoting eta unknown (Reply 15):
If senior GA management had the chance, they would drop every international route and just be a domestic airline- that's their bread and butter.

See the fares regulation above... domestic is losing money.
The key here is to just dump the least profitable stuff.

Quoting eta unknown (Reply 15):
The 737's will be re-configured this year: 12 business class seats will be reduced to 8 and more economy class installed.

Yes, government policy... which is hilarious!
When losing situational awareness, pray Cumulus Granitus isn't nearby !
 
eham
Posts: 402
Joined: Thu Sep 04, 2003 9:00 pm

RE: Garuda Sees Large Loss; Plans Route Adjustments

Wed Mar 25, 2015 10:42 am

Flew AMS-LGW on GA088 last Saturday, 40pax max boarded for this stretch.

Felt like a private flight on a B773
 
User avatar
eta unknown
Posts: 2858
Joined: Wed Jun 13, 2001 5:03 am

RE: Garuda Sees Large Loss; Plans Route Adjustments

Wed Mar 25, 2015 1:06 pm

Quoting mandala499 (Reply 26):
AMS direct is very costly. The previous CGK-AMS-DXB was a disaster, but CGK-AUH-AMS was doing better, as Etihad codeshare was doing wonders to the loads.

Actually the JKT-AMS route is performing significantly better than via AUH (-$5m/month!). The problem, of course, is the stupid LGW tag... and GA still don't know how to fix LON.... even LGW-SIN-JKT would be better than the current arrangement and as previously stated above, exploring Berlin and Star Alliance fortress FRA is more idiotic than flying AMS-LGW.

Quoting IndianicWorld (Reply 25):
Who cares about such things really? If an airline is trying to claim status over profit/sustainability good luck to them.

Shame on you for voicing such things! Don't you know in Indo it's more about status???
 
jfk777
Posts: 7366
Joined: Tue Aug 22, 2006 7:23 am

RE: Garuda Sees Large Loss; Plans Route Adjustments

Wed Mar 25, 2015 2:24 pm

Quoting eta unknown (Reply 24):
uoting jfk777 (Reply 18):Garuda would be wise to explore a Premium Y class
Already examined and rejected.

With all the successful airlines in the world getting Y class how can Garuda "reject" it ? If Lufthansa, BA, Cathay, ANA and Singapore "rejected
" it then GA would have done the correct thing.
When the "ivy league" of airline does it and GA doesn't you have to wonder why GA is "wise" and the other are not. Clearly GA should explore Y class again.
 
FlyingHollander
Posts: 429
Joined: Sun Jul 31, 2011 3:50 pm

RE: Garuda Sees Large Loss; Plans Route Adjustments

Wed Mar 25, 2015 5:46 pm

GA is increasing its CGK-AMS-LGW to 6x weekly from July to October.

http://www.luchtvaartnieuws.nl/nieuw...uda-deze-zomer-vaker-naar-schiphol
If it ain't Dutch, it ain't much.
 
jfk777
Posts: 7366
Joined: Tue Aug 22, 2006 7:23 am

RE: Garuda Sees Large Loss; Plans Route Adjustments

Wed Mar 25, 2015 6:52 pm

Quoting jfk777 (Reply 29):
With all the successful airlines in the world getting Y class how can Garuda "reject" it ? If Lufthansa, BA, Cathay, ANA and Singapore "rejected
" it then GA would have done the correct thing.
When the "ivy league" of airline does it and GA doesn't you have to wonder why GA is "wise" and the other are not. Clearly GA should explore Y class again.

This is about Premium Economy.
 
asetiadi
Posts: 233
Joined: Wed May 15, 2013 5:05 pm

RE: Garuda Sees Large Loss; Plans Route Adjustments

Thu Mar 26, 2015 1:18 am

Quoting mandala499 (Reply 26):
Give them some time? You want to continue fund these losses through your tax money? Give them some time to what? Lose more money?

LOL...like everyone here paid CORRECT taxes....

Quoting mandala499 (Reply 26):
Last year I started flying Garuda again, and... stopped... and went back to flying LCCs. Sorry, the service is just facepalm quality.

Ok. I'm going to try the LCC and since It's been a long time I haven't touch any LCC, which airline is running the best LCC now? Batik? Citilink? (no Lion) and I really hate Air Asia to the maximum. I can give you tons of reasons for that.
 
mandala499
Posts: 6593
Joined: Wed Aug 29, 2001 8:47 pm

RE: Garuda Sees Large Loss; Plans Route Adjustments

Thu Mar 26, 2015 1:44 am

Quoting asetiadi (Reply 32):
I'm going to try the LCC and since It's been a long time I haven't touch any LCC, which airline is running the best LCC now? Batik? Citilink? (no Lion) and I really hate Air Asia to the maximum.

My choices are always Indonesia Air Asia and Citilink. Bear in mind that Citilink may have changed since the CEO change. I'm pinning my hopes on Arif Wibowo being able to overcome the "internal inertia" at Garuda rather than Citilink at the moment to be honest. The problem in Garuda is that it's staff and management are very quick to gloat about any improvements (to the level where I want to grab a bucket and puke), so Arif Wibowo has a huge challenge. But from my past conversations with him, he knows his stuff better than almost everyone in Garuda past and present that I know personally.

Batik is full service, but the ground staff I hear leaves a lot to be desired.

Quoting eta unknown (Reply 28):
Actually the JKT-AMS route is performing significantly better than via AUH (-$5m/month!).

Ah, I fell to the loads vs yields trap on that one I guess...

Quoting eta unknown (Reply 28):
Don't you know in Indo it's more about status?

           
Yes... Indo state owned enterprises is about status over profitability. When losses are announced, it's "blame whatever you can think of"...
When losing situational awareness, pray Cumulus Granitus isn't nearby !
 
Prost
Posts: 2578
Joined: Wed Oct 03, 2012 6:23 pm

RE: Garuda Sees Large Loss; Plans Route Adjustments

Thu Mar 26, 2015 1:50 am

Do Skytrax ratings actually increase sales?
 
User avatar
eta unknown
Posts: 2858
Joined: Wed Jun 13, 2001 5:03 am

RE: Garuda Sees Large Loss; Plans Route Adjustments

Thu Mar 26, 2015 5:03 am

Quoting Prost (Reply 34):
Do Skytrax ratings actually increase sales?

Status, Prost, Status. It does make a nice marketing logo to stick on advertisements though.
And the Board of Directors can report this achievement to the shareholders (not that there's really more than one). Queue Mandala499's bucket...

Quoting jfk777 (Reply 29):
Clearly GA should explore Y class again.

Yeah... they looked at premium Y issue in depth and decided they didn't want to do it. Do not pass go...

[Edited 2015-03-25 22:29:45]

Popular Searches On Airliners.net

Top Photos of Last:   24 Hours  •  48 Hours  •  7 Days  •  30 Days  •  180 Days  •  365 Days  •  All Time

Military Aircraft Every type from fighters to helicopters from air forces around the globe

Classic Airliners Props and jets from the good old days

Flight Decks Views from inside the cockpit

Aircraft Cabins Passenger cabin shots showing seat arrangements as well as cargo aircraft interior

Cargo Aircraft Pictures of great freighter aircraft

Government Aircraft Aircraft flying government officials

Helicopters Our large helicopter section. Both military and civil versions

Blimps / Airships Everything from the Goodyear blimp to the Zeppelin

Night Photos Beautiful shots taken while the sun is below the horizon

Accidents Accident, incident and crash related photos

Air to Air Photos taken by airborne photographers of airborne aircraft

Special Paint Schemes Aircraft painted in beautiful and original liveries

Airport Overviews Airport overviews from the air or ground

Tails and Winglets Tail and Winglet closeups with beautiful airline logos