Garuda Indonesia’s president has announced that the airline will cut down its Jakarta-London route once again and reduce flights to Amsterdam.
The airline is planning to cut down a lot of domestic and international routes to reduce the operational costs of the airline and reach their target profit for the year 2019 as the airline is not earning a myriad amount of profit on those routes.
Currently, the airline operates 6 weekly flights to Amsterdam which will be reduced down to two or three flights a week.
Amsterdam is airline’s top European destination where it’s European head office is based at.
It is the most profitable route the airline operates in Europe and is believed to be the gateway for them. The airline worked closely with KLM to provide better flight options to its passengers who wanted to fly to the UK after London route closure as KLM flies a well above 18 different destinations in the UK. Cutting down flights to Amsterdam may affect the airline with more subsequent damage.
Garuda Indonesia cancelled its flights to London last year in August however a few weeks later the flights were resumed. Now after less than a year the airline is once again suspending it’s flights to London in August 2019.
Akshara the company’s president said
“For London, we will be closed because it cannot be subsidized”
According to Garuda Indonesia’s website, the only 2 routes it operates in Europe are London and Amsterdam.
Some of the reasons that caused the airline to lose the profits are hiking prices of its tickets, due to which the ultra-low-cost carriers are gaining more share in the market.
Airline’s management was also changed a couple of times in the past years which had different strategies to improve the profits.
Current CEO’s priorities are:
“The leadership must face the turbulent economic conditions, starting from the depreciated rupiah to rising oil prices. The main focus of the new management is … an increase in employee happiness. Because making the employees happy will improve customer service.”
Source : pinterpoin