Below is a list with tagged columns and company profiles.
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Despite posting a net loss in full-year 2017, Indonesia's national flag carrier Garuda Indonesia is optimistic that it will see net profit in 2018. Last year the airline's net loss reached USD $213.4 million, dropping dramatically from a net profit of USD $9.4 million in the preceding year. What strategy will Garuda Indonesia apply to turn the loss into a profit in 2018?
National flag carrier Garuda Indonesia targets to see the arrival of 50 new airplanes up to 2024 in an effort to revitalize the airline's fleet and improve its on-time performance. Pahala Mansury, President Director of Garuda Indonesia, explained that the airline has already been making these orders since 2014. One Boeing 737 Max 8 aircraft arrived on 26 December 2017. Between 2020 and 2024 more planes will follow, between 5-10 per year.
State-owned port and harbor services operator Indonesia Port Corporation (IPC, also known as Pelabuhan Indonesia II or Pelindo II) plans to list its subsidiary Jasa Armada Indonesia on the Indonesia Stock Exchange in December 2017. IPC eyes to generate up to IDR 2.5 trillion (approx. USD $188 million) by selling a 30 percent stake in its unit.
Former Garuda Indonesia CEO Emirsyah Satar, who currently serves as Chairman of Lippo Group's MatahariMall.com, was named a suspect in a corruption case by Indonesia's anti-corruption watchdog known as the KPK (Komisi Pemberantasan Korupsi). KPK spokesman Febri Diansyah said the corruption case involves a bribery case that is linked to several parties in a number of countries. The agency will give a press conference to share more details later on Thursday (19/01).
Indonesian airline Garuda Indonesia will evaluate its sponsorship deal with English Premier League football club Liverpool within the next two months. Arief Wibowo, General Director of Garuda Indonesia, said brand awareness abroad is important and the sponsorship deal is also a source of pride for the airline. However, considering the deal costs about USD $9 million per year, the airline has to evaluate whether it is worth continuing the sponsorship deal that is set to expire in mid-2016.
State-controlled national airline Garuda Indonesia may need to stop direct flights between Jakarta and Amsterdam (The Netherlands) because the runway of Jakarta’s Soekarno-Hatta International Airport does not meet required safety standards. Airport operator Angkasa Pura II recently decreased the airport’s pavement classification number (PCN) as the surface of the runway is not strong enough to accommodate wide-body Boeings that take off while being fully loaded with passengers and fuel.
Skytrax, the United Kingdom-based consultancy airline and airport review and ranking agency, named Hong Kong’s Cathay Pacific as the world’s best airline in the World Airline Awards this week at the Farnborough International Airshow in England. Cathay Pacific snatched the title from Emirates that had to settle for a fourth place this year. The ranking is based on surveys involving 16 million air passengers, evaluating the products and services of full-service as well as budget airlines. Garuda Indonesia was ranked seventh.
Garuda Indonesia is the most renowned airline of Indonesia. The company, which received four stars from Skytrax, provides both domestic and international flights (passengers and cargo). In recent years, Garuda has experienced a remarkable transition from being banned to fly to the Eurozone towards becoming a world-class airline that is acknowledged by international critical acclaim. Although Garuda is Indonesia's top class airline, it taps the low-cost aviation sector through its subsidiary Citilink Indonesia.
Citilink Indonesia, the low-budget unit of Garuda Indonesia, announced its intention to conduct an initial public offering (IPO) in 2015 by offering 30 percent of its stocks to the public. The Indonesian budget airline also plans to expand its fleet-size to 50 airplanes. However, before an IPO can be conducted, the company said it should improve its (financial) performance first. In 2012, Citilink Indonesia recorded an USD $28.4 million loss on operating revenues of USD $73.4 million.
Citilink Indonesia, the low budget carrier of national airline Garuda Indonesia, expects to transport around 7.8 million air passengers in 2013. This constitutes a sharp rise compared to last year's result of 3.8 million passengers. The airline, which handles 140 flights per day to 22 Indonesian cities, expects the increase to be in line with the growth of its armada to 29 aircrafts in 2013 (including 22 new Airbus A320 planes). These types of aircrafts are designed to serve short or middle-long distance flights.
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Governments’ social and business restrictions (imposed in the context of preventing the further spread of COVID-19 in society) and people’s concern over the virus have damaged both the tourism and transportation industry in an unprecedented way.
Indonesia's air transport industry is about to see a big change as the nation's national flag carrier Garuda Indonesia said it will take over operational control of the rival Sriwijaya Group. This move seriously boosts the Garuda Group's share of the fast-growing domestic aviation market.
Indonesia's flag carrier Garuda Indonesia, a state-controlled five-star airline that is listed on the Indonesia Stock Exchange, requested to postpone the arrival of new airplanes in an attempt to improve the company's corporate earnings. Pahala M. Mansury, General Director of Garuda Indonesia, said the order (the number of airplanes) has not been revised, neither has the company's fleet plan (that runs to 2020) been changed. Only the timing of arrival of five planes has been altered.
Indonesia's national flag carrier Garuda Indonesia is ready to open a new flight route between the famous island of Bali and Chengdu (the provincial capital of Sichuan province in Southwest China) in order to cater Chinese passengers going to Bali. Arif Wibowo, General Director of Garuda Indonesia, informed that this new international route is scheduled to be opened in January 2017. He added that Chengdu has great potential in terms of boosting foreign tourist arrivals to Bali. Garuda Indonesia already flies passengers from Beijing, Shanghai and Guangzhou to Jakarta.
Indonesian financial authorities are considering to ease foreign ownership limits for local Islamic banks and to promote new sharia-compliant financial tools in an effort to make the Islamic finance industry more attractive to foreign investors and the Indonesian population. Despite having the world’s largest Muslim population and being a dynamic emerging economy, Indonesia plays only a very minor role in the global Islamic banking industry. Meanwhile, domestically, Islamic banking still seriously lags behind conventional banking.
The Indonesian rupiah exchange rate depreciated 0.54 percent to IDR 11,822 per US dollar in the past week (based on the Bloomberg Dollar Index). Several internal and external factors influenced the currency’s performance over the past week, such as increased US dollar demand from local Indonesian companies, Bank Indonesia’s decision to leave the BI rate unchanged and the improving US economy. Lastly, the structural current account deficit (triggered by expensive oil imports) remains a problem for investors.
What is the most important corporate news from Indonesia on Tuesday 12 August 2014? Here we present the daily market roundup. This includes following companies: Bank Internasional Indonesia, Kalbe Farma, Sri Rejeki Isman (Sritex), Phapros, Siloam International Hospitals, Asia Resource Minerals, Bumi Resources, Kao Corporation, Garuda Indonesia as well as June 2014 retail sales (Bank Indonesia survey), and the 10 years’ imprisonment demand for suspended Banten Governor Ratu Atut Chosiyah.
The mysterious disappearance of Malaysia Airlines flight MH370 on Saturday 7 March 2014 reminds us that flying does not go without risks. Although it is popularly said that flying in an airplane is safer than driving in a car - and despite the fact that Malaysia Airlines is a world-class airline - it is worth taking a closer look at the current state of aviation in the Asia Pacific, Indonesia in particular, as air traffic in the Asia Pacific has been booming (and budget airlines mushroomed) in recent years due to the expanding middle class.
As companies' financial results of 2013 slowly start to be released, two reports - so far - have raised eyebrows due to significant declines in net profit. These are publicly listed, but majority state-owned, airline Garuda Indonesia and fully state-owned electricity firm Perusahaan Listrik Negara (PLN). Both companies felt the impact of the sharply depreciating Indonesia rupiah exchange rate. The currency fell over 21 percent against the US dollar in 2013 due to capital outflows amid looming US tapering and current account deficit concerns.
Garuda Indonesia, the country's top-class airline, is planning to conduct a rights issue in the first quarter of 2014. Through this corporate action, which has already been approved by the shareholders, the state-controlled company aims to raise IDR 2 trillion (USD $162.6 million). For 2014, the airline plans to allocate IDR 4 trillion in capital expenditure (capex) for business expansion. About half of this amount should originate from funds generated through the rights issue.
