The Jakarta post reported that PT Garuda Indonesia, Indonesia National flag carrier, posted an unaudited net profit of US$ 27.8 million for 2007. That is a significant achievement especially when we compare it with the preceding year result where the company lost US$ 20.6 million. The number of passengers also reported rose 11% from 7.55 million passengers on 2006 to 8.41 million in 2007.
I hope those number really reflect a better and healthier condition of the company. Many people said that Garuda Indonesia had a great business prospect, unfortunately they were managed by the wrong people. I am glad that the government finally chose a right ‘pilot’ and the right ‘route’ for the company. It’s still long way to go to arrive at a destination named ‘world class carrier’ but as long as they are improving continuously, I believe they will arrive there on time. Later, when they finally become a word class carrier, who knows, perhaps we can have a greater opportunity to do hajj with the ‘flying white whale’, Airbus 380.
According to the Financial Times Germany, the A380 is priced between US$ 295.6 million and US$316 million. If we assume that the company able to keep their momentum and they produce the same profit each year, then by ‘lazy calculation’ (assuming the objective of company is to have A380 and they don’t pay any tax or dividend) we may have one A380 in 10-15 years. We don’t have to worry about the airport, because we can park the A380 in Singapore or Malaysia. I believe they won’t mind to have one extra A380, especially when it attract/generate 500 extra potential (read: rich) Indonesian tourist to visit their country everyday. But to be fair and to keep a good relation with those two countries – perhaps it would be better to have two A380’s, put one in Malaysia and put another one in Singapore. Perhaps that could be the right solution to solve all our problems with Malaysia and Singapore, buy two A380 and park those two on their airport. Remember, there is small probability (I mean really small) that in 10-15 years Airbus will offer a ‘hangar sale’, buy one A380 get one for free!
So what are you waiting for my dearest Garuda? keep profiting and buy A380!
2 Comments
Hmmm….nice post. Buying A380 is not a big deal to Garuda, I mean it’s easy to set aside $600 million for two A380, FYI, Garuda has set to order 50 Boeing 737-800NG and 10 Boeing B777 worth $4 billion. The Terminal 3 of Soekarno Hatta airport is ready to accomodate A380 passengers, and pls dun worry about parking it or them. we have more than enough space. The question is, is Garuda attractive enough for 600 passengers in one load? The competition in the air is soo tough, probably, at this moment, it’s still hard to compete with even Philippine Airlines.
However, i really like this post, pls visit my http://www.myindonesia.co.nr ….and find articles about Garuda. Good work..good world
Thanks for your comment and the information. I just knew that our Soekarno Hatta is ready to accommodate the Jumbo Jet! Would love to see (and fly with) it one day! You are wright the competition is tough – but I don’t think it would be problem for Garuda to attract 600 passanger in one load, if they provide Flight Jakarta-Amsterdam plus discount price for students
.
Anyway…thanks again.