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)
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.

News Comment

Today's Industry

President Joko “Jokowi” Widodo Wednesday (16/06) inspected mass COVID-19 vaccination for workers in financial service sector held at Tennis Indoor Senayan, Jakarta

Kamis, 17 Juni 2021 - 20:10 WIB

President Jokowi Inspects Mass COVID-19 Vaccination for Workers in Financial Sector

President Joko “Jokowi” Widodo Wednesday (16/06) inspected mass COVID-19 vaccination for workers in financial service sector held at Tennis Indoor Senayan, Jakarta.

Minister of Manpower Ida Fauziyah delivered a statement in the Presidential Office, Monday, (10/8). Photo by: BPMI

Kamis, 17 Juni 2021 - 19:00 WIB

Manpower Minister Tells Companies to Reinforce Health Protocols

Companies must continue to enforce strict health protocols in the workplace, particularly amidst the recent spike in COVID-19 cases in several regions, Minister of Manpower Ida Fauziyah has…

President Jokowi inaugurates Indonesia’s Export Release to the Global Market online at Bogor Presidential Palace, West Java (04/12/2020). (Photo by: Press Media and Information Bureau of Presidential Secretariat/Lukman)

Kamis, 17 Juni 2021 - 17:55 WIB

Indonesia Reports Upward Trend Economic Recovery

The Government has announced that Indonesia economic recovery will continue in line with the positive trend of exports and imports. For the record, Indonesia’s exports in May 2021 reached…

International Labour Organization (ILO)

Kamis, 17 Juni 2021 - 16:20 WIB

Indonesia Elected Member of ILO Governing Body

Indonesia has been chosen as a regular member of the Governing Body (GB) of the International Labour Organization (ILO) for the 2021-2024 period and will represent the Asia Pacific region along…

Minister of Home Affairs Tito Karnavian. Photo by: PR of Cabinet Secretariat

Kamis, 17 Juni 2021 - 15:40 WIB

Gov’t Extends Micro-Scale Restrictions to 28 June

The Government has decided to extend the implementation of Micro-Scale Activity Restrictions (PPKM Mikro) from 15 June to 28 June 2021.