Garuda expects 30 pct income increase in 2009

Jakarta (ANTARA News) - National flag carrier Garuda Indonesia has set itself an income target of Rp765 billion in 2009, or an increase by 30 percent from that in 2008 which stood at Rp589 billion, a Garuda director said.

"We hope our income next year would increase by 30 percent," Garuda director for commercial affairs, Agus Priyanto said here on Thursday.

He said that in order to achieve the target Garuda would increase the number of its new routes and increase operational efficiency.

In 2008, Garuda set an income target of Rp589 billion but up to September 2008, it only booked an income of Rp369 billion.

"This year we will open 18 new domestic flight routes and four international ones," he said.

The international routes which would be opened in 2009 are Surabaya-Hong Kong, Denpasar-Hong Kong, Denpasar-Adelaide and Bali-Singapore.

The new domestic routes included Tanjungkarang-Jakarta, Jakarta-Malang, Jakarta-Ujungpandang-Kendari, Manado-Ternate, Balikpapan-Tarakan, Denpasar-Lombok, Jakarta-Jambi, Jakarta-Bengkulu and Jakarta-Gorontalo.

Priyanto said that the new route addition would improve the company`s financial performance.

The increase in the number of routes is in line with Garuda`s plan to procure 14 new airplanes of the B737-800 type beginning in 2009.

"At least four new planes are expected to arrive early this year. The remaining ones will arrive in stages. I don`t remember the amount of investment needed for this program. Not all of the planes are to be purchased, however. Some are leased," he said.

At present, the Indonesian flag carrier owns 58 units of airplanes.

Regarding the airline`s plan to increase efficiency, Priyanto said that the company would save much from the operational costs, especially with regard to the lowering of aircraft fuel (avtur) prices.

"The company will become more efficient in the use of avtur. This would enable airplanes to fly longer with efficient use of fuel," he said.