Garuda Indonesia remains optimistic that it will be successful in its bid to be a publicly listed company by the year 2003.
Mr. Bachrul Hakim, the commercial director of the airline recently insisted that his company would maintain its profitability, take itself public in 2003, and avoid going to the Government for any further financial support. Citing the professional management culture now prevailing at Garuda and the Company's current financial performance, the airline's commercial director was buoyant that the target to "go public" set for the carrier in 1998 would happen on schedule in 2003.
Garuda controls 60% of the Indonesian domestic air market over the routes it operates or 45% of capacity on all domestic routes.
After losing Rp. 2.2 trillion in 1998, the airline managed a dramatic turn around the following year, recording a profit of Rp. 409 billion - the first profitable year in many years for Garuda. While currency exchange losses caused a loss of Rp. 78 billion in the fiscal year 2000, a modest profit of Rp. 46 billion was logged in for 2001.
Rules issued by the Indonesian Stock Market require three years of sustained profitability before a company can make an initial public offering.
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