Garuda Indonesia trapped in a relentless financial tailspin

[Pak Tani]

If I am paying from my own pocket, I will typically go for the least expensive option.

As long as she has blue eyes, right?

 

[snpark]

Ol' Blue Eyes 💙

Ol' Blue Eyes 💙 #FrankSinatra #Sinatra

youtube.com

 

[pantaiema]

As long as she has blue eyes, right?

Well, You typically have no way of knowing who will be piloting your next flight. But if that information were available and the ticket price remained the same or similar, I would choose a pilot with a strong safety record.

Some early research suggests that having blue eyes might provide a slight advantage for pilots for long haul which will typically deal with low light conditions (still debatable). Because blue eyes contain less melanin in the iris, they may allow more light to enter the eye, which could improve vision in dim or twilight environments

Also study shows female pilot female (Still debatable) will typically react better than male in high-pressure scenarios, displaying better situational awareness and consistent decision-making, while male pilots are more risk taker.

Did you say 'hi' to the lady

 

[Hawk256]

If I am paying from my own pocket, I will typically go for the least expensive option.

I get that but spending hours with a sub standard crew giving sub standard service on a sub standard plane isn't a good value.

 

[Balifrog]

Some interesting points.
The comments are interesting as well.

 

[serious_fun]

...a sub standard crew ...on a sub standard plane

I've never been on a submarine, but the lack of space sounds oppressive.



sorry. couldn't resist the corny joke.

 

[snpark]

What's long hard and full of seamen

 

[serious_fun]

What's long hard and full of seamen

Why are camels called the 'ships of the desert' ?

 

[snpark]

Why do we say Amen not Awomen

Because we sing hymns. Not hers

 

[Balifrog]

Another interesting video. The comment section is good also....

 

[pantaiema]

Another interesting video. The comment section is good also....

What this documentary did not mention is that other privately owned domestic airlines operating routes within Indonesia and to neighbouring countries do not receive state funding injection, yet they are still able to compete effectively with Garuda Indonesia and Citilink and profitable. Examples include Lion Air, Batik Air, Wings Air, and Super Air Jet. In addition, low-cost carriers from neighbouring countries, such as AirAsia, operate under similar conditions with Garuda, City Link.

Like other national flag carriers flying internationally to regions such as the Middle East, Europe, the United States, and Australia, they are exposed to the same market environment, yet many of them remain profitable.

Another point not addressed is that Garuda Indonesia is one of the most corrupt state-owned enterprises in Indonesia.

 

[snpark]

 

[pantaiema]

The link has been posted on post #25

 

[snpark]

Ok well now it's the latest version.

 

[Balifrog]

Ok well now it's the latest version.

Nope, it's exactly the same I posted earlier.....
Dated Y.T. 9 days ago.

 

[snpark]

Duly noted sorry then

 

[jstar]

What this documentary did not mention is that other privately owned domestic airlines operating routes within Indonesia and to neighbouring countries do not receive state funding injection, yet they are still able to compete effectively with Garuda Indonesia and Citilink and profitable. Examples include Lion Air, Batik Air, Wings Air, and Super Air Jet. In addition, low-cost carriers from neighbouring countries, such as AirAsia, operate under similar conditions with Garuda, City Link.

Obviously the Indonesian market is in fact a duopoly (oligopoly with two players). Both, Garuda and the Lion Group have approx. 1/2 of that market, give or take 2%.

So then the problem is also that the prices are kept very high, the upper area of the bandwidth that the government allows. And just let’s cancel some flights, the prices will make up for that. If both players apply that logic the consumer is screwed.

NB; those are the takeaways from the video I don’t really agree with. But my whole explanation etc. could not be saved.

 

[snpark]

My friend booked SG DPS on garuda economy the other day for 4jt one way. MH in BUSINESS class from KL to JAK is 3jt only inc lounge access. Full hot email with wine etc. Crazy

 

[Bob]

Another interesting video. The comment section is good also....

That video seems a little sensationalistic. The claim that GA had half their fleet in heavy maintenance at one time is difficult to take at face value. It may be that half their fleet was in (not so heavy) maintenance or storage, which isn't the same. It would be very irregular to have more than a relatively few aircraft in calendar check at the same time. That's not to say that they're not in a bind; they certainly are.

 

[Bob]

What this documentary did not mention is that other privately owned domestic airlines operating routes within Indonesia and to neighbouring countries do not receive state funding injection, yet they are still able to compete effectively with Garuda Indonesia and Citilink and profitable. Examples include Lion Air, Batik Air, Wings Air, and Super Air Jet. In addition, low-cost carriers from neighbouring countries, such as AirAsia, operate under similar conditions with Garuda, City Link.

Like other national flag carriers flying internationally to regions such as the Middle East, Europe, the United States, and Australia, they are exposed to the same market environment, yet many of them remain profitable.

Another point not addressed is that Garuda Indonesia is one of the most corrupt state-owned enterprises in Indonesia.

Of course those four examples of privately owned airlines, which are all effectively one company, have their own means of playing the system to their benefit. Whether they're profitable or not is a matter of conjecture, Air Asia Indonesia is a majority Indonesian company btw.
GA, with their heavy domestic network and very limited international routes, is not at all in the same operating environment as SQ or the Gulf airlines.