Aircraft
Garuda’s ‘Quantum Leap’ Falls Flat
Big losses in first half and heightened competition prompt second look at growth strategy.
Garuda and Boeing celebrated delivery of the airline’s first 777-300ER last July 2. (Photo: Boeing)
Garuda and Boeing celebrated delivery of the airline’s first 777-300ER last July 2. (Photo: Boeing)

Despite ambitious plans to expand its international network and notwithstanding a high-profile launch of Jakarta-London services on September 8, Garuda Indonesia has decided to take a more conservative approach this year after posting a group operating loss of $234 million in the first half of the year, compared with a $10.92 million loss in the same period in 2013. Plans now call for Garuda to strengthen its domestic operations while relying on its membership with the Skyteam alliance to expand its international network.  The airline has also announced plans to defer aircraft delivery, cut out unprofitable routes and reduce capacity growth.