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Garuda No Plans for European Expansion

Low Long Haul Yields and Code Sharing Keeps Garuda Focused on Regional Routes.

(3/15/2004) In a seminar held on March 3, 2004, in Jakarta, Garuda Indonesia's President Director, Mr. Indra Setiawan, explained that the airline will not be expanding its long-haul routes to Europe due to low load factors, low ticket yields, and the ongoing success of code-share arrangements with Malaysian Airline System.

Code Share

According to Mr. Setiawan, the code share between Garuda and Malaysian Airlines generates 100 passengers on flights to Paris and London via Kuala Lumpur. Plans are underway to expand the cooperation between the two airlines, including the assignment of 61 Indonesian stewardesses to serve on the Malaysian Airlines flights and the painting of each airlines' livery colors on opposite sides of the same aircraft.

Amsterdam Flight

Garuda Indonesia's sole remaining European route operated with its own aircraft is the Amsterdam service. This represents a dramatic reduction from the 11 European routes operated by Indonesia's flag carrier in 1997.

Focus on Regional Routes

Low yield and low loads on long-haul routes to Europe have caused Garuda to rely on code share arrangements and concentrate its resources on developing short and medium-range routes in the Asia-Pacific region. Accordingly, the airline is expanding its routes to such destinations as China, Malaysia, Vietnam, Japan, Australia and New Zealand.