Garuda Philippines: Become Leading Airlines

 Essay about Garuda Philippines: Become Leading Airlines


PT. Garuda Indonesia (Garuda) is the oldest air travel company in Indonesia and owned by the government. In 2010, in its 60th anniversary-an age that should enter or in mature position- it showed more loss than profit (like proven in the five consecutive a lot of financial statement). In 2006 within the new innovator of Emirsyah Satar Gi started to transform its technique to make earnings. The new strategies include synergize all operation level and embedded one particular new value, which is staff work, to accomplish company's focuses on. These adjustments resulted in earnings amount to IDR 975 billion in 2008 and IDR 1 . 018 trillion last year. In the end 2010 Garuda intending to be a general public company through IPO (Initial Public Offering). In order to do that, Garuda has restructured it is debt to ECA and Bank Mandiri. Repayment to Bank Mandiri will be created by exchange its debt with 10% of shares distributed through BORSEGANG (OSTERR.), while arbitration with ECA for debts restructuring has been affirmed and only wait for the final signature. Beside the big policy for IPO, Gi faces a good competition from your LCC trip company, because many travellers still choose to LCC over the premium air travel like Gi. Other than high grade market they serve, in addition they serve the LCC segment using Citilink brand, however Garuda nonetheless focus on it is premium service over the LCC, which is why the amount of fleet and the routes furnished by Citilink is still limited. It has become the hindrance for Gi to increase it is market share and market innovator, and this sensation applies intended for domestic and international tracks. The market head for home and worldwide routes is Lion Air flow and Atmosphere Asia correspondingly. Looking at the Citilink's functionality and the tendency towards LCC, Citilink can be described as promising business to Gi since the increase passenger from 2008-2009 reached 277. 46%. Other than debt and competition issues, Gi also faces trust concern comes from the labor union to the managing due to economical statement visibility issue, critique for providing assets, and demand of salary maximize.


Depending on several problems mentioned above, problems and issues around Garuda are: 1 . Places subsequent position inside the Indonesian airlines in term of range of market stocks (19% intended for domestic ways compare to thirty percent Lion Air's market share, and 34% of international ways compare to 46. 9% Surroundings Asia's market share); 2 . Lack of trust from labor to the management due to problem of transparency in financial statement, criticism for selling possessions, and require of salary increase.


Frame of research used to fix the problem by using management ideas as proven in the subsequent figure: Ideal Issue

Examination Stage

Internal Analysis


Exterior Analysis


Practical Analysis


Human Resources



Macro Evaluation



Social & Culture


Micro Analysis


Porter's 5 Makes of competition analysis business

Strength and


Opportunities and


Alternatives Tactics


Recommended Approach


A. Exterior Analysis

The external evaluation is divided into two parts, the macro analysis and industry examination. Macro analysis will treat issues

macro (state) that affect the air travel industry, while the industry evaluation will talk about industry problems that impact the profitability of the airline industry. 1 ) Macro Research using INFESTATIONS Analysis

installment payments on your Industry Examination using Assurer 5's Pushes of Competition Analysis Business

From industry analysis presented above can be concluded earnings of the scheduled flight industry is definitely low as a result it is necessary to boost core proficiency and maintain useful cost to get to competitiveness that will lead to lasting growth. Results from PEST and Industry...