Garuda Indonesia Expects US$25 Million From Intl Cargo

Jakarta (Antara Bali) - The Indonesian flight carrier, Garuda Indonesia, is expecting US$25 million from international cargo service by the end of 2016.

"Currently, the average income from cargo per month is US$21 million. Business cargo, mainly catering to the international market, will continue to support the company's revenue stream," President Director of Garuda, Arif Wibowo, said here on Tuesday.

According to him, one of the strategies developed by the company to increase the cargo capacity is to open international flights.

"We should explore international markets and also enlarge our cargo capacity on overseas flights," he added.

He pointed out that the largest component of cargo business of Garuda currently comes from China, covering Canton and Shanghai, reaching about 20 tons per day.

Meanwhile, the cargo capacity from Tokyo and South Korea is about 20 tons per day, and from Europe is around 14-15 tons per day.

To capture the growth opportunity in the cargo business, in particular in the international market, Garuda is opening new routes and adding frequencies of domestic flights to a number of foreign countries.

For instance, he stated, the Jakarta-Madina flight will be available in December 2016. Also, the Surabaya-Madina route will be opened.

To support its flight expansion plans, Garuda provides 50 units of Boeing737 MAX, while its subsidiary, Citilink, provides 50 units of Airbus A320.

Regarding the business expansion to China, Garuda will soon open an international flight on the Denpasar-Chengdu route in January.(WDY)