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Garuda's Crisis Planning

More Grounded Airplanes and Stay-at-Home Staff on the Planning Boards as National Flag Carrier Weighs its Options.

(5/15/2003) Hoping for the best, but preparing for the worst, Garuda Indonesia have announced that if current air passenger loads fail to improve in the coming six months they may be forced to send staff back to their homes to wait out the current crisis.

Garuda's President Director, Indra Setiawan stated that the airline's income has dropped 28% in the first three months of 2003 affecting the carrier's ability to achieve their annual income target of Rp. 11 trillion (approximately US$ 1.3 billion), which could drop to Rp. 8 trillion (approximately US$ 941 million) if the current trend in poor loads continues. Should the lower turnover figure eventuate, Garuda's projected profits would similarly decrease from the original target of Rp. 550 billion (approximately US$ 64 million) to Rp. 170 billion (approximately US$ 20 million).

Speaking to the press recently, Setiawan called on all the Airline's employees to extend their maximum understanding to the national flag carrier during the current period of drastic steps to upgrade efficiency. These steps have included a decision in early May to ground four of Garuda's B747-400 aircraft when passenger loads on selected international routes dropped below 60%.

The Indonesian national flag-carrier currently employs 9.415 employees with steps underway to reduce the total workforce to between 6.000 and 7.000 workers. That total would bring Garuda's ratio of employees to each aircraft in operation to 1:150 a total in keeping with airline industry standards.