Berita Bali reports that Garuda and China Airlines have signed a Memorandum of Understanding (MOU) for a Code Share arrangement covering both airline's route networks. The signing of the MOU took place on Thursday, February 12, 2009, with the President and CEO of Garuda Indonesia Emirsyah Satar and the President of China Airlines Huang-Hsiang Sun in Nusa Dua, Bali.
The agreement between the two carriers covers cooperation on code shares for flight reservations, cargo, joint promotions to increase air traffic between their respective destinations.
To date cooperation between the carriers included code shares on the Jakarta-Taipei-Denpasar daily service using A330 and B747 aircraft.
With China Airlines working as the "operating party" on the flights, Garuda is given 45 seats to sell on every Denpasar-Taipei–Denpasar flight and 30 seats on the reverse Taipei-Denpasar-Taipei, according to an explanation provided by Emirsyah Satar to the press.
Satar said that Garuda Indonesia benefits from a special pro-rate agreement (SPA ) dictating the Indonesian carrier's share of ticket revenues sold to destination beyond Taipei in Asia, Japan and the U.S.A.. Conversely, China Airlines is provided with special through air fares to all domestic and regional destinations served by Garuda.
The mutual marketing support and access to advantageous air fares is intended to result in growing passenger numbers between markets served by both China Airlines and Indonesia.
As the cooperation between the two airlines develops further, special fares over the routes Surabaya-Hong Kong-Taipei, Surabaya-Singapore-Taipei and Denpasar-Hong Kong-Taipei will go on sale in May. A special cargo rate from Jakarta-U.S.A and Jakarta–Europe for freight flown on China Airline is also planned.
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