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#41761 - 24 Jan 07 02:39 GOI/Garuda's 2006 Net Loss Narrows
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Pujangga Besar

Registered: 24 Apr 08
Posts: 7508
Loc: Jakarta
From Government of Indonesia

Garuda's 2006 Net Loss Narrows

Flag carrier PT Garuda Indonesia posted a narrower net loss last year, due to reduced operating costs and improved efficiency, its president director, Emirsyah Satar, said on Wednesday (17/1/07).

Garuda posted a net loss of Rp298.3 billion ($32.88 million) last year, compared to Rp688.5 billion a year earlier, Satar said, adding that the number of Garuda's routes that had become profitable had increased substantially.

"Overall, our domestic operation has improved significantly from 2005 but our international (operation) has not recovered," he was quoted as saying by Reuters. He said a lower number of travelers to Bali was a key factor.

Garuda's revenue fell 2% to Rp11.31 trillion due to the appreciation of the rupiah during 2006, but in US dollar terms, sales have risen 3.2%. For the January to November period, the number of passengers travelling Garuda rose 5% year-on-year to 7.6 million. The company has not published full-year operational figures.

Garuda finance director Alex Maneklaran meanwhile said the company is allocating $20 million to cover the costs of laying-off about 15% of its 5,600 workforce, Bisnis Indonesia reported. He said the layoffs are needed to enable the company to purchase new aircraft.

The company also said it will sell four subsidiaries -- PT GMF Aero Asia, PT Aerowisata, PT Abacus Distribution System and PT Gapura Angkasa -- in April to enable it to concentrate on its core business.

Garuda will maintain a stake in GMF Aero Asia, which deals with aircraft maintenance and PT Aerowisata, a catering firm, as they are considered part of the core business, Satar said, adding that PT Abacus, a ticket reservation firm, and PT Gapura Angksa are not part of the core business, and all or most of their shares will be sold.

He said Garuda is awaiting the state minister for state enterprises’ decision on the company’s plan to spin off its low-fare unit, Citilink.
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#41856 - 25 Jan 07 01:30 Re: GOI/Garuda's 2006 Net Loss Narrows [Re: KuKuKaChu]
naga Offline

Registered: 18 Jan 07
Posts: 260
Loc: undisclosed location
It simply blows my mind how a national carrier with a near monopoly in such a massive market can post a loss at all...

They have reduced it to ONLY 33m??

Does this mean they reduced the amount of management larceny and political/military parasites recieving their retainers as well... or only just sacking workers?
"Keep on rockin' in the free world"


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