Mr. Riza Perdana Kusuma, General Manager Hong Kong & Macao of Garuda Indonesia

Indonesia's flag carrier is acquiring more aircraft and adding new routes. Sophie He reports.

Garuda Indonesia, the national airline of Indonesia, is determined to take up more market share in both domestic and international markets, despite all the uncertainties of the global economy, says the airline's general manager of Hong Kong and Macao Riza Perdana Kusuma.

A strategic expansion program, Quantum Leap 2011-2015, is afoot. The company has set a target for five years and will do all it takes to ensure the target is met.

"The target for last year was to get the initial public offering (in Indonesia) and it's done already, Garuda Indonesia is a listed company," says Riza. "This year is the year of expansion."

The company is adding new routes and expanding its fleet, he says.

Three years ago, Garuda owned a mere 60 aircraft or so. But by end-2012, there will be 105 aircraft in its fleet. By 2015 the number is expected to rise to 194. Garuda hopes to add 20 new aircraft this year, including four Boeing 737-800NGs and 2 Airbus A330-200s. As of now, the airline serves 31 domestic routes and 20 international destinations, mostly in Asia.

"But there will be more (routes)," Riza says. "We want to increase our routes in Europe."

Garuda has one flight daily from Jakarta to Amsterdam, and plans to add four more destinations in Europe - London, Rome, Paris and another city. The flag carrier also plans to open a route to Los Angeles, which will be its first US foray.

The company opened a direct route to Taipei this year and it added a destination in Haneda Japan.

Garuda serves three destinations in China - Beijing, Shanghai and Guangzhou - and has a plan to operate another route in China.

"We want to be a global player (in the industry)," Riza says, adding that the airline has the advantage of being backed by Indonesia's rich culture.

There are thousands of islands in the country, with wholly different culture and languages. Garuda brings the special 5 senses, consist of scents, tastes, sounds, touches and sights from its own cultures on its aircraft in order to enhance the Garuda Indonesia experience for passengers soon as they step on board, Riza says.

The company believes now is the perfect timing for expansion, despite all the economic uncertainties around the world.

Garuda wants to take up more market share, not only in the international market but also on domestic routes. Indonesia is a fast developing country with a population of nearly 240 million. Gross domestic product growth so far this year has been around 6.5 percent and is expected to maintain this pace.

"Besides, the middle class of the country is growing very fast. We are really trying to grab a bigger market share of premium segment in Indonesia," says Riza.

Garuda is the only full service airline in the country. This gives it an advantage while competing in the domestic market. Besides, the company owns a low cost airline, Citilink, targeting the fast growing mass market in the country.

By mid-2012, Garuda had increased its domestic market share to 27.6 percent from 26.5 percent at the end of 2011.

Asked about the company's ability to support its aggressive expansion plans, Riza says the financial performance speaks for itself. In the first half of 2012, Garuda had an operating income of $1.512 billion, a 17.7 percent rise from the $1.285 billion in the same period a year ago. Its operating profit was $10.8 million, a major turnaround from the $34.8 million loss in the same period of 2011.

He started his career as a pricing department staff. Before he was promoted as general manager in Hong Kong, he worked as a general manager in Nagoya, Japan, for two and a half years.

"(By) this December, I will be working in Hong Kong for two years," he says. Garuda's Hong Kong office has 22 staff whose major concern is to increase market share and enhance brand awareness. The company has been refurbishing its position in Hong Kong.

"Last year, we started to target the corporate market, business travelers, the premium segment as well as special segments including divers, photographers and honeymooners."

Riza says in some ways he is doing an ambassador's job in Hong Kong as he tries to attract his customers by introducing them to the beautiful and culturally rich country that Indonesia is. He enjoys working in Hong Kong as it is an international city and the business culture is different from Japan's.

"But I respect different business cultures, and the respect and understanding of different cultures is the key to a successful business," Riza says.

(HK Edition 09/21/2012 page8)