Its plans called for a new-aircraft purchase program, company-wide employee training, corporate development and expansion, and a new marketing strategy to build on its international position. Although the airline had achieved international recognition as a major carrier, it was $1.3 billion in debt and suffering a corporate identity crisis. In return, the government provided subsidies for pioneer flights to make them more profitable.Ī massive reorganization in 1984 led to substantial growth in Garuda's international service as the company sought to position itself as a large-carrier-only airline. With nearly 60 percent of its destinations classified as pioneer service, Merpati devoted about one-third of its fleet to these efforts. Although many pioneer flights were forced to land on primitive dirt or grass runways, these trips were considered part of Merpati's mission as a state-owned company. Merpati served the well-established domestic routes and was also responsible for "pioneer" flights-providing links between smaller, less-developed cities and larger ones-in an effort to promote national expansion and efficient utilization of natural resources. In the early 1980s, Garuda began transferring domestic routes to one of its subsidiaries, Merpati Nusantara Airlines, also wholly owned by the government. In addition, Garuda's establishment of international flight routes has been partly responsible for developing the national tourism industry since the 1980s, when Indonesia began turning its focus away from the petroleum trade after the oil glut of that decade and sought to cultivate tourism as an alternative means of income. Nearly 6,000 of the islands are inhabited by a diverse ethnic population totaling over 170 million, and Garuda has acted as a domestic air link for the nation.
#Garuda indonesia airways series
Indonesia is the world's largest archipelago, stretching for more than 3,100 miles and comprising a series of more than 17,508 Southeast Asian islands, including Bali and Java. Named for a mythical Indonesian bird who saves a maiden from death, Garuda was charged by the government with fostering the nation's economic growth.ĭevelopment of an efficient air travel industry in Indonesia was crucial because of the country's unique geographic situation. The airline launched its maiden flight from Calcutta to Rangoon in January 1949. In October 1948, shortly before world recognition of Indonesia's independence, Garuda began humbly when a team of Indonesian Air Force officers purchased a single DC-3 Dakota from Singapore. Garuda flies about six million passengers a year.Īlthough Indonesia proclaimed itself an independent republic in 1945, the nation continued to struggle with the Dutch until 1949. Aviation is a vital mode of transport for the archipelago nation made up of 1,700 islands. As a state-owned company, Garuda's fortunes have always been entwined with the nation's as a whole, and economic development has always been a part of its mission. The structure is specific, different from other transportation business.Garuda Indonesia is a major international and domestic airline that has been the flagship of Indonesia's airways for more than 50 years. Contribution of the paper is brief describe on the structure of revenue and expenditure items in airways business. Based on the results of the cost-benefit analysis, it is evident that the ETOPS flight can reduce the fuel cost, although the flight requires trained pilots. While for the route Perth Cengkareng NON-ETOPS and ETOPS have the same amount of 46.03%. It is equal to 49,53% for route Cengkareng - Perth NON-ETOPS and 47,70% for ETOPS. The biggest percentage of cost was direct flight cost. Cost structure analysis was conducted to identify the percentage of flight cost component. Net benefit of ETOPS flight is USD 1.212.863 and NON ETOPS is USD 1.154.894. The cost-benefit analysis was conducted to compare the flight between NON ETOPS flight and ETOPS flight Cengkareng - Perth - Cengkareng route. ETOPS can reduce travel time and fuel consumption. * Corresponding author: Indonesia reducing the flight cost used flight extended operations (ETOPS). Industrial Engineering Department, Diponegoro University, Jl Prof Soedharto, SH, Tembalang, Semarang, 50275 Central Java, Indonesia Ratna Purwaningsih, Lakshita Pritandari * and Haryo Santoso