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Minister of State-Owned Companies Say Garuda Should Abandon Unprofitable Jakarta-London Flights
NusaBali reports that Gatot Trihargo Deputy in the Financial Services, Survey and Consultancy Division of the Ministry of State-owned Companies (BUMN) has revealed that the BUMN Minister Rini Sumarno has called on Garuda Indonesia to reconsider its current loss-making Jakarta-London service.

Trihargo made his comments at a public gathering in Jakarta on Sunday, April 22, 2018, explaining that the total estimated size of the Jakarta-London direct flight market is only 35,000 passengers annually. Meanwhile, he said by comparison the potential market on the London to Perth market is 350,000 passengers annually.

Trihargo points to the historic “kangaroo route” between London and Australia that has a potential market of 350,000 annual passengers, saying the Jakarta-London market is only 10% of this figure. Because of this, the BUMN Deputy suggest it is better for Garuda Indonesia to focus on developing domestic routes, a move he said would also have a positive effect on regional economies in Indonesia.

Trihargo said the BUMN Minister has always maintained that if the Jakarta-London route proves not profitable, Garuda should focus its attentions on developing other, more profitable routes.

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