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Lesson Learned: Garuda Indonesia Attains "5-Star Airline" Award for Second Year Running

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Garuda Indonesia Attains "5-Star Airline" Award for Second Year Running
Jumat, 19 Februari 2016 11:45 WIB | 572 Views
Pewarta: prwire
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Garuda Indonesia (Antara)

Indonesian Minister of State-Owned Enterprises: Garuda's certification as 5-Star Airline to strengthen Nation Branding

SINGAPORE, Feb 19, 2016 (Antara) - National flag carrier Garuda Indonesia has been awarded the ultimate "5-Star Airline" rating from Skytrax for a second year running. This year's award was presented to the President & CEO of Garuda Indonesia, M. Arif Wibowo, by Edward Plaisted, CEO of Skytrax, at the Changi Exhibition Center during Singapore Airshow 2016.

Indonesian Minister of State-Owned Enterprises Rini Soemarno, Indonesian Ambassador for Singapore I Gusti Ngurah Swajayam, and President Commissioner of Garuda Indonesia Jusman Syafii Djamal were present during the ceremony. Minister Rini Soemarno expressed her highest regards "for all Garuda management and staff, their hard work, and their success in maintaining the quality and standards that exemplify a "5-Star Airline"."

"We believe that recognition of Garuda Indonesia as a "5-Star Airline" for consecutive years will not only help to strengthen Garuda Indonesia as a global brand, but also support our efforts at "Nation Branding", as laid out in the Indonesian government's strategic program," Rini added.

As the national flag carrier, Rini said, Garuda Indonesia was succesfully representing the Republik of Indonesia with this achievement. "But success also brings a larger challenge for Garuda Indonesia, to continuously improve the quality of their service, and deliver this service to all customers on the ground and in the air."

The Minister finished by suggesting that the global achievement would be followed by better financial results, and extended her appreciation for Garuda Indonesia's turnaround financial results which ended in net profit for 2015.

M. Arif Wibowo, President & CEO, Garuda Indonesia, expressed that "The 5-Star rating reflects the hard work and deep commitment from both management and staff at Garuda who continuously deliver their best efforts to maintain and improve the company's performance in all business aspects.

"This achievement will be an important milestone for Garuda Indonesia in 2016, as well as being a challenge for everybody in Garuda Indonesia Group to constantly improve performance and deliver service excellence to all customers," Arif said.

The "5-Star Airline" certification was awarded following the ongoing Skytrax Audit, with comprehensive points covering all service aspects; pre-flight, in-flight and post-flight, including ground handling services, lounge, seat and cabin comfort, inflight meals and inflight entertainment.

Skytrax CEO Edward Plaisted said that the "5-Star Airline" rating awarded to Garuda Indonesia for two years consecutively was a result keeping consistently high service standards.

"In the globally competitive airline industry, Garuda Indonesia proved that they can survive and even perform to the highest values and service standards. The consistency of product and service quality is the most important part in a 5-Star certification audit, and we proudly announce that Garuda's aircraft are offering the variety of classes that is a requirement of a 5-Star Airline," Edward added.

Spurred on by a strong commitment from the airline's management and staff to deliver best service, Garuda Indonesia's performance continues to earn global recognition. In 2013, Skytrax awarded Garuda Indonesia for "The World's Best Economy Class". This continued in 2014, with recognition as "The World's Best Cabin Staff", a "5-Star Airline", and 7th rank in "The World's Top 10 Airlines".

At the World Airline Awards, Paris Airshow 2015, Garuda Indonesia was once again named "The World's Best Cabin Staff", based on a global customer satisfaction survey conducted by Skytrax of more than 18 million passengers. The survey, which covers 245 international airlines, is held every year and measures standards across 41 key performance indicators of airline products and services.

As part of a fleet revitalization program throughout 2016, the Garuda Indonesia Group will receive 16 new aircraft in total; 1 Boeing 777-300ER, 4 Airbus A330-300, 4 ATR72-600, and also 8 Airbus A320 to be operated by Citilink. By the end of 2016, Garuda Indonesia Group will operate a total of 188 aircraft; 144 aircraft for Garuda Indonesia and 44 aircraft for Citilink.

To continue the positive growth achieved during its "Quick Wins" program in 2015, Garuda Indonesia will enter a "Sky Beyond" program for 2016 aiming at rapid company expansion, focusing on three 'core strategies' - company group synergy, effectiveness and efficiency, and service enhancement - to accelerate company achievement and performance.

As part of its company synergy, the Garuda Indonesia Group joined Singapore Airshow, Asia's largest aerospace and defence event. This was Garuda Indonesia's first participation as a Group, as only a subsidiary, the Garuda Maintenance Facility AeroAsia, had participated in the past.

The presence of Garuda Indonesia Group at the Singapore Airshow follows Group strategy to develop brand image, to elaborate potential business, to enhance business relations with stakeholders, and to boost up the awareness to Garuda Indonesia Group's strategic role as Indonesia's trade envoy in international level.

At Singapore Airshow 2016, the Garuda Indonesia Group, through Garuda Maintenance Facility AeroAsia, looks to several short- and long-term business contracts, with a value of nearly USD 100 milion.

Garuda Indonesia currently has 6 subsidiaries with diverse business sectors; Garuda Maintenance Facility AeroAsia, specialized in integrated aircraft maintenance, including engine and aircraft components repair service; Citilink, a low cost carrier (LCC) airline projected for budget traveller; Aerowisata, specialized in hospitality, transportation, catering and travel agent service; Gapura, specialized in ground handling service, supoorted by cargo and warehousing service; Asyst, specialized in IT and consultation service; and Abacus - which now has transformed to Sabre Travel Network Indonesia - specialized in technology provider service for global travel and tourism.

About PT Garuda Indonesia (Persero) Tbk.

Presenting a new level of service excellence in air travel, Garuda Indonesia, the national airline of Indonesia, seamlessly connects more than 75 destinations worldwide to not only one of the largest economies in Southeast Asia, but also an array of exotic locations in the beautiful archipelago of Indonesia all at once. With close to 600 daily flights and a fleet of 169 aircraft with an average age of less than five years old, Garuda Indonesia proudly serves its passengers with the award-winning "Garuda Indonesia Experience" service, which highlights Indonesia's warm hospitality and rich diverse culture.

The airline continuously strives, through its ongoing transformation program, to provide better and more convenient services with one of the youngest fleets in the sky, which should grow to around 190 aircraft by 2015. The progress of Garuda Indonesia's transformation program can be seen from achieving a Skytrax's 5-star airline rating, one of the world's 10 best airline, as well as winning the prestigious "The World's Best Cabin Crew" award for two consecutive years in 2014 and 2015, and "The World's Best Economy Class" award in 2013, also from Skytrax. Garuda Indonesia is a member of SkyTeam, the global airline alliance with 20 members, providing access to an extensive global network with over 16,320 daily flights to 1,052 destinations in 177 countries.



Garuda Indonesia is listed on the Indonesian Stock Exchange [IDX:GIAA]. For further information, please log on to The Airline of Indonesia - Garuda Indonesia follow @IndonesiaGaruda on Twitter, like our Facebook page at PT.GarudaIndonesia, or subscribe to youtube.com/GarudaIndonesia1949.


But all in all, Garuda Indonesia history is not always bright as today, During the late 1990s and early 2000s would prove to be a turbulent and difficult time for the airline; two separate accidents in 1996 and 1997 added to the problems being caused by the 1997 Asian financial crisis, resulting in a drastic reduction in operations, including the termination of service to the Americas and a massive scaling back of its European operations. Largely due to historical links with the Netherlands, Garuda continued to operate flights to Amsterdam, Frankfurt and London after the initial cutbacks, although these flights were also discontinued on 28 October 2004. The situation was exacerbated by the 11 September 2001 terrorist attacks in the U.S., the Bali bombings, the 2004 Indian Ocean earthquake and tsunami, and the SARS scare, all of which contributed to a downturn in air travel and Indonesian tourism. As a result, its earlier order for the Boeing 777 was deferred, and so was an order for 18 Boeing 737-800s to replace its ageing 737 Classic fleet.

On 7 September 2004, the situation was worsened when human rights activist Munir Said Thalib, travelling to Amsterdam via Singapore on Garuda Indonesia Flight 974, was assassinated by off-duty pilot Pollycarpus Priyanto, who slipped arsenic into his drink some time before the departure of the flight's second leg to Amsterdam. He was reported to have felt unwell several hours after departure from Singapore, during which time he was checked on by a doctor who happened to be on board, and moved to the business class cabin to sleep. He died approximately two hours before arrival into Amsterdam, sparking an international controversy, during which time Priyanto, along with CEO Indra Setiawan and deputy Rohainil Aini, were all convicted of his murder, although it has been alleged it was under orders from the Indonesian State Intelligence Agency (BIN). The airline was found negligent in failing to perform an emergency landing and was ordered to pay compensation to Munir's widow, but failed to do so. However, by 2005, the airline had largely recovered from its economic problems, swapping its order for six Boeing 777-200ERs for 10 Boeing 787-8 Dreamliners in 2005, but its operational problems would remain.

In June 2007, the EU banned Garuda Indonesia, along with all other Indonesian airlines, from flying into any European countries, following the crash of a Boeing 737-400 earlier that year. With the support of the international aviation industry for all Indonesian airlines, the EU promised to review its ban and sent a team of experts, led by the European Commission's Air Safety Administrator Federico Grandini to Indonesia to consider lifting the ban. In August 2007, the transportation minister of Indonesia announced that the EU would lift its ban hopefully sometime in October, stating that the ban was attributed to communication breakdown between the two parties and that discussions were in progress.

Following the lift of the EU ban against Garuda Indonesia and three other Indonesian carriers, the airline announced in July 2009 an aggressive five-year expansion plan known as the Quantum Leap.[29][30] The plan involved an image overhaul, including changing the airline's livery, staff uniform and logo, and nearly doubling the size of its fleet from 62 to 116. The Quantum Leap also plans to boost passenger annual numbers to 27.6 million in the same period, up from 10.1 million at the time of program launch through increasing domestic and international destinations from 41 to 62. Route expansions included Amsterdam, with a stopover in Dubai, in 2010. As of 2014, Garuda flies to Amsterdam non-stop five times a week using a Boeing 777-300ER with continuing service to London, with the sixth weekly service to be added by the end of 2015. Other European and American cities such as Frankfurt, Paris, Rome, Madrid and Los Angeles are being considered for reopening.

As part of the Quantum Leap, the airline refreshed its logo and redesigned its iconic livery in 2009, more than 20 years after the last update. New uniforms were introduced in 2010. In 2010, the airline placed a firm order for six additional Airbus A330s at the 2010 Farnborough Airshow, while it opened a new hub at Sultan Hasanuddin International Airport, Makassar, South Sulawesi to increase services to the eastern part of Indonesia on 1 June 2011, its third after Jakarta and Denpasar

During this time period, the airline also added additional frequencies to many of its international routes, including to Singapore, Bangkok, Beijing and Shanghai from Jakarta, while it also added capacity to Denpasar-Seoul. It also re-opened routes, including Jakarta-Taipei in 2012.

At the Paris Air Show 2011, Garuda Indonesia announced a firm order of 25 Airbus A320s with an option for another 25. All 25 Airbus A320s are to be used by their subsidiary, Citilink The airline's earlier order for the Boeing 787, made in 2005, was changed once more, due to the delays in the 787's entry into service, and Garuda opted to sign for 10 Boeing 777-300ERs instead, which it would take delivery of in 2013 to use on long-haul flights to Europe, and medium-haul flights within Asia, such as to Japan, China and Korea, as well as short-haul domestic routes between Jakarta and Denpasar.

The airline made its debut on the Indonesia Stock Exchange in February 2011, with the government of Indonesia retaining a majority of the shares. PT Trans Airways bought 10.9 percent stake of Garuda Indonesia unsold IPO shares from underwriters on 27 April 2012. The transaction was valued at Rp 1.53 trillion ($166.8 million).

In 2014, the airline became one of eight airlines to earn the prestigious 5 star rating from Skytrax, marking the end of the 5-year Quantum Leap program. Following this announcement, Emirsyah Satar, who had been CEO for the past nine years, announced his resignation and retirement, and promoted budget spin-off Citilink subsidiary Arif Wibowo as CEO.

Following Wibowo's promotion, he began a "Quick Wins" cost-cutting drive to cut down on losses while boosting revenue through various measures, including cancelling unprofitable routes and increasing staff efficiency. Despite this, Wibowo remains committed to continue the airline's international expansion, especially once market conditions, such as the weakening rupiah, improve. This was reaffirmed following the airline's announcement of its intent to order 90 new aircraft, from both Boeing and Airbus, worth $20 billion at list prices at the 2015 Paris Air Show.
 

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