Network changes include discontinuation Brisbane-Denpasar route

Garuda Indonesia today announced the introduction of a new “Quick Wins program” in direct response to market conditions and in line with the airline's ongoing development.

Following the weakening Indonesian Rupiah and other factors which have impacted the performance of international airlines globally, Garuda Indonesia will adopt the following measures to increase the overall performance of the airline:

• Increase “Revenue Generator” – Optimise revenue potential
• Restructure “Cost Driver” – Manage and restructure costs to increase efficiency,
• “Refinancing” – Implement measures to secure the company's financial condition.

This short-term strategy comprises of three main components including a wide network restructure, fleet management and reduced overheads. Under the new structure, Garuda Indonesia will discontinue its service between Brisbane-Denpasar effective from 1 February 2015.

Among other route restructures Garuda Indonesia will:

• Reduce flight routes between Jakarta-Haneda (vv), Denpasar-Haneda (vv)

• Postpone the opening of new routes, including Jakarta-Nagoya (vv)

• Adjust flight schedules to various destination cities in Australia and Europe (more details will be released as they are confirmed).

Fleet Management & Reduced Overload:

Garuda Indonesia will adopt a fleet management program that will include the early termination of several aircraft, subleasing of aircraft and reduction to the number of business class seats on its Boeing 737-800NG aircraft from 12 seats to 8 seats. This will effectively increase seat capacity in the economy class (attracting a wider market) of up to 15-20 percent and reducing costs (unit cost/seat).

Garuda will also reduce overhead costs up to 10 percent by adjusting costs that do not yield any additional value and by increasing employee productivity. For example, Garuda will not increase the number of employees in the event of the arrival of 15 new aircraft in 2015. This way, Garuda will be able to reduce the current aircraft: employee ratio of 1:60 to 1:50.   

For further information, call Garuda Indonesia on 1300 365 330 or visit www.garuda-indonesia.com/au.

For more information, please contact:

Sarah Corry ICON International Communications

Tel: + 61 2 8235 7600

Mobile: + 61 450 803 881 (Sarah)

scorry@iconinternational.com.au

About Garuda Indonesia

Presenting a new level of service excellence in air travel, Garuda Indonesia, the national airline of Indonesia, seamlessly connects more than 60 destinations worldwide to not only one of the largest economies in Southeast Asia, but also a plethora of exotic locations in the beautiful archipelago of Indonesia all at once. With approximately 500 daily flights and a fleet of around 130 aircraft, Garuda Indonesia proudly serves our passengers with the award-winning "Garuda Indonesia Experience" service, which highlights Indonesia's warm hospitality and rich diverse culture. 

After receiving the IATA Operational Safety Audit (IOSA) certificate in 2008 and becoming a registered IOSA Operator, Garuda Indonesia implements security and safety standards that puts it on par with other leading IATA member airlines. The airline continuously strives, through its ongoing transformation program, to provide better and more convenient services with one of the youngest fleets in the sky, which should grow to around 194 aircraft by 2015. 

In line with improvements in various aspects of its performance and service, Garuda Indonesia has won a number of accolades and recognition from both national and international institutions, including “The World's Best Economy Class” award from Skytrax and the “Best in Region: Asia and Australasia”, by the “Airline Passenger Experience Association (APEX)”.

For further information, please log on to www.garuda-indonesia.com/au or follow @GarudaAustralia on Twitter, @GarudaIndonesiaAus on Instagram and Garuda Indonesia Australia on Facebook.