Garuda Indonesia Projects Saudi Arabia Route Approximately US $ 275 Million
By : Herry Barus And Aldi Firhand. A | Friday, August 17 2018 - 22:30 IWST
Garuda Indonesia (Hariyanto/ INDUSTRY.co.id)
INDUSTRY.co.id - Jakarta - PT Garuda Indonesia (Persero) Tbk projects Saudi Arabia's route revenues this year to be around US $ 275 million.
Based on the brief prospectus published Thursday (08/16/2018), to achieve this revenue, Garuda Indonesia increased flight frequency by about 1,975 times and production capacity (ASK) by 6,480,000, by adding new aircraft on the route.
The plan, the company will add an aircraft fleet with Airbus A330-900 Neo aircraft types (301 seats) by prioritizing comfort in the services offered by the company.
Garuda projected the Jeddah and Medina routes in the period 2018-2023, where the consistency occurred in the number of passengers, while the tariff was expected to decrease to reach wider consumers.
Going forward, the company sees great potential to increase the frequency of the Jeddah and Medina routes by looking at the prospect of increasing the market, especially through the destination flights of Medina which are favorite for Umrah activities.
In addition, the company has the potential to increase its revenue from the Jeddah and Medina routes from frequency maximization, route efficiency, and increased seating capacity used.
In 2017, Saudi Arabia's route ticket sales revenue was approximately US $ 250 million, with flight frequencies of around 1,750 times and ASK numbers of more than 5.5 million.
In the 2013-2017 period, the average revenue earned by the company on ticket sales for the Jeddah and Medina routes was around US $ 205,686 million. Meanwhile, the average Garuda flight frequency for the route is 1,476 times and the average ASK is 5,648 million.