Garuda profits rise in 2009

In the midst of a still recovering global economy, in 2009 Garuda Indonesia managed to book a net profit of IDR 1,009 trillion with an operating profit of IDR 807.6 billion.

Profit climbed compared to that of the previous year in which Garuda Indonesia gained IDR 669 billion in profits. The airline owes this positive development to a number of strategic plans and programs in various areas, namely in commercial, operational and financial aspects, increased employee productivity and program implementation towards greater efficiency.

Thanks to programs carried out in the commercial front, which included service improvement, Garuda Indonesia succeeded in raising the passenger volume by 3%, from 10.1 million passengers in 2008 to 10.3 million in 2009. The airline’s ASK (availability seat kilometer/ASK) also increased from 20,1 million seat kilometer in 2008 to 20,9 million seat kilometer in 2009, an increase of 4% with yield of 7,66 cents. In 2009, Garuda Indonesia noted seat load factor/SLF of 74 percent and an OTP of 83 percent.

In addition to growth in production, other areas also showed positive improvements as a result of the introduction various efficiency programs, for example fuel conservation program, electronic procurement, system and procedure improvement, and enhanced employee productivity.

Meanwhile, in the past four years, Garuda Indonesia also succeeded in significantly reducing company debts from USD 868 million (including its obligations to ECA/European Credit Agency) in 2006 to USD 527 million in January 2010.

In preparation of future challenges and to ensure the Company’s sustainable development, Garuda Indonesia continues to promote efficiency and effectiveness among its employees, introduced a positive corporate culture and a meritocracy program. The meritocracy program rewards employees according to their performance and contribution to the Company. Those showing high productivity and a positive contribution to the Company will be remunerated, the amount based on current market pricing. Through this program, Garuda Indonesia gives employees every possibility and opportunity to develop their potentials and skills for the benefit of the Company, and in return they will receive suitable remuneration for their efforts.

Source: TDA

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