As most international airlines head into the red, slashing routes and spending, flag carrier Garuda Indonesia has revealed plans to fly new routes and expand its business.
On Wednesday, the airline announced it would open 16 new flight routes this year -- 13 domestic and three international -- as well as add more aircraft to its fleet.
The new routes will begin gradual operation from Jan. 16, and will later be supported by 14 new Boeing 737-NG aircraft to be delivered in mid-2009.
The new international routes will link Denpasar with Adelaide, Denpasar with Hong Kong, and Surabaya with Hong Kong.
Garuda says the new international routes are aimed at establishing a stronger flight network rather than generating significant profit.
"We need to establish a strong network, especially in the (Asia-Pacific) region, so we can create a new market for the new airplanes," Garuda spokesman Pujobroto told The Jakarta Post on Friday.
"Our new routes will give international travelers more options when visiting Indonesia."
Garuda currently operates 54 aircraft, including six new Boeing 737-NGs that were delivered last year.
By 2013, Garuda will have 128 aircraft, including 50 Boeing 737-NGs and 10 Boeing 737-300ERs that are currently being built.
"Backed by 128 aircraft, in 2013 Garuda Indonesia will make a quantum leap into the future," Garuda president director Emirsyah Satar said in a statement.
Garuda mainly serves domestic routes, making it relatively immune to the global shakeup. Its international routes include flights to Japan, Australia and the Middle East.
The airline used to operate flights to six European cities before the European Commission imposed a flight ban in mid-2007 on all Indonesian airlines, due to safety concerns following a spate of fatal accidents involving Indonesian airlines.
The Transportation Ministry, however, is upbeat the commission will lift the ban in March.
"If the EC lifts the ban, our top priority is to open a flight route to Amsterdam ," Pujobroto said.
Garuda is eyeing Rp 15 trillion (S$1.91 billion) in revenue and around $300 million in operating profits in 2008. The company currently has outstanding debts of around $700 million.
Emirsyah previously predicted revenue for local airlines to grow by 10 percent next year, down from the usual 15 percent.
Garuda reported it had achieved 85 to 95 percent seat load factor during the Christmas holiday. Its load factor for returning travelers reached 95 percent through to Jan. 5.
The Transportation Ministry predicted domestic air passenger numbers of 46.34 million last year, an 18.3 percent jump from the 39.2 million passengers in 2007. It also forecast 3.37 million international passengers in 2008, up 5.64 percent from 3.19 million in 2007.
Garuda Indonesia new routes in 2009
Jakarta - Tanjungkarang
Jakarta - Malang
Jakarta - Makassar - Kendari
Jakarta - Makassar - Gorontalo
Jakarta - Makassar - Sorong
Jakarta - Makassar - Ambon
Jakarta - Makassar - Palu
Jakarta - Jambi
Jakarta - Manado - Ternate
Jakarta - Balikpapan - Tarakan
Jakarta - Pangkal Pinang
Denpasar - Lombok
Denpasar - Kupang
Denpasar - Adelaide (Australia)
Denpasar - Hong Kong
Surabaya - Hong Kong