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Flag Carrier Garuda Indonesia Extends Flight Cancellations to Mideast, China

June 16, 2020, 10.36 AM

JAKARTA, – National flag carrier Garuda Indonesia has extended its flight cancellations to the Middle East and China, while continuing to reduce its flight frequency to other regions by 60 to 80 percent due to the coronavirus crisis, the company said June 15.

The company will monitor the situation and make further adjustments as necessary, according to a filing with the Indonesia Stock Exchange.

The first round of temporary cancellations to the Middle East and China was announced in mid-April and was initially for scheduled flights until April 30.

Garuda Indonesia has suspended flights to and from Jeddah, Madinah, Beijing, Shanghai, Guangzhou, Zhengzhou, Xi’an, and Hong Kong amid travel restrictions worldwide that pulled down demand.

Also read: Indonesia to Establish Travel Bubble With Leading Partners

The reduced flight frequency to the regions of Southwest Pacific/Australia, Japan, Korea, Europe, and Asia will also be maintained.

“The frequency reductions fluctuate daily as the services will be adjusted to the demand and development of each country or a region,” the company said.

The Covid-19 pandemic has significantly impacted company operations following the implementation of the government-led large scale social restrictions (PSBB), which has hindered people’s movement and public gatherings.

To maintain and increase the company's financial performance amid the sluggish economy, Garuda Indonesia has set some strategies in the financial and operational aspects. These include negotiations with the lessors to ask for rental holiday and extending the rental period to reduce the monthly payment.

Also read: Airlines and Hotels in Indonesia Need 2 Years to Recover Post Pandemic

The company will also optimize the flight frequency and capacity for both domestic and international flights, and increase its cargo services to support the government in transporting humanitarian assistance, medicines, and health equipment.

Garuda Indonesia recorded a net income of $6.98 million, while its operating profit stood at $147.01 million in 2019.

(Writer: Akhdi Martin Pratama | Editor : Erlangga Djumena)


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