Business Round-Up
Garuda cuts deep to stem losses
September 1st 2014
Garuda Indonesia, after reporting an interim loss of US$ 212 million to June 30, said it will eliminate unprofitable routes and seek more efficiencies in its operations as it seeks savings of US$55 million to balance its books. Garuda shut down Jakarta-Taipei in July and deferred plans to launch flights from Jakarta to Manila and Mumbai. It is also considering delaying delivery of some of the 27 aircraft it has on order from Airbus and Boeing. Read More » Garuda said high fuel costs and a lower exchange rate for the Indonesian rupiah were largely responsible for the red ink. Fuel for the six months took up 30%-40% of operating costs. Overall, operational costs increased 15%, the carrier said.
