Indonesian flag carrier Garuda Indonesia is reducing the number of flight frequencies and routes, to reduce its losses due after Indonesian government reduced the price ceiling on domestic tickets.
Among the routes that have been identified as part of the cuts include Belitung-Singapore, and will close the Jakarta-London flights after the summer ends. The airline will also reduce the number of weekly flights of the Jakarta-Amsterdam route to three.
With the cuts to the London service, Amsterdam will again be the lone European destination for Garuda. The Jakarta-London service was reopened in November on a thrice-weekly schedule, while the Jakarta-Amsterdam flights operate on a six-times weekly schedule. The London service has been operated as a triangle-route (Jakarta-London-Bali-Jakarta) since January.
As part of the cuts, Garuda will also reduce flight frequencies to domestic destinations Morotai in North Maluku, Maumere in East Nusa Tenggara and Bima in West Nusa Tenggara.
According to Garuda Indonesia commerce director Pikri Ilham Kurniansyah, the lower price ceiling of domestic fares from the Indonesian government mandate has made the cost of operating flights to remote areas 80% higher than flights to lucrative areas.
“It is a difficult decision, but we have to take it so that we can achieve this year’s performance target,” Pikri said as reported by kontan.co.id.
Indonesia’s government recently lowered the price ceiling of the highest domestic economy fares by 12 to 16 percent, which applies to both low-cost and full-service airlines based in the country.