PT Garuda Indonesia is taking a number of steps to restructure its reputation and its operations via a remapping of its international flight routes, mechanical overhauls of its mechanical plants and a total refurbishment of the interiors of its wide-body fleet.
To this end, Garuda has allocated US$ 54 million for the repair and overhaul of three Boeing 747-400 and six Airbus 330 aircraft used on its international routes. According to Garuda's Finance Director, Alex Maneklaran, quoted in the Indonesian-language Bali Post, "we are beginning this year with the allocation of US$ 6 million for every aircraft."
Alex told the press that the overhaul and refurbishment program was part of the Airline's restructuring of its international services. The man in charge of finance for the National Carrier said explained the continuing losses suffered by the airline on its international routes, saying, "the losses are due to the condition of our airplanes which are no longer competitive, forcing us to sell tickers below market levels."
He explained that of the Rp. 191 billion (approximately US$ 21 million) loss racked up the Carrier in 2006, the international routes operated by Garuda loss US$ 30 million while the domestic routes contributed around US$ 10 million in profits to the balance sheet.
The Business and Marketing Manager of Garuda, Agus Priyanto, defended the need for an urgent refurbishment of interiors on board the Airline's wide-body aircraft, saying television screens and seats would be repaired. By upgrading tired interiors on its international fleet, Priyanto said, "we hope that our international routes will begin to be profitable this year."
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