Garuda to go public in first quarter

Banda Aceh - State Enterprises Minister Mustafa Abubakar said here on Saturday PT Garuda Indonesia would go public in the first quarter this year.

"Let us pray it will be warmly welcomed by investors so that the target of shares to be sold will be met," he said at the launching of an environment program held by the state-owned airline company in cooperation with International Leuser Foundation (YLI) in Aceh.

He said PT Garuda would sell 25 percent of its shares to the public to raise Rp2.5 trillion to strengthen its capital.

Mustafa expressed his appreciation to the company that had been able to achieve a four-star ranking or one grade lower for the company to get the world`s highest ranking.

"We hope PT Garuda which is under the supervision of the office of the state enterprise minister will be able to achieve the five-star status so that the public listing program will be smooth," he said at the event which was also attended by Garuda president director Emirsyah Satar and Aceh governor Irwandi Yusuf.

PT Garuda Indonesia is optimistic the initial public offering could be realized in the first semester this year.

"Right now preparations are already being done including selecting the underwriters," he said.Emirsyah meanwhile said the IPO plan was part of the company`s restructuring program to improve its performance.

The proceeds from the IPO are expected to reach US$300 million and will be used to finance additional fleets, refurbishment as well as improving services," he said.

He said the result of the IPO would be dependable upon market conditions. "We will adapt it to the domestic capital market conditions," he said.

Emirsyah said until 2014 the number of the company`s fleets would be increased to 116 units from currently 67 units. The increase in the number of fleets will be followed by a hike in routes to serve and flight frequencies to reach 3,000 flights per week from currently around 1,700 flights.
Source : Antara News

Garuda to need one year to prepare for European market

Denpasar - PT Garuda Indonesia will need nine to 12 months to prepare for the European market following the lifting of the European Union`s ban on Indonesian airline fligths into the region.

"Our fleet is now being prepared and new aircraft will be added to it every year," the airline company`s senior general manager for the Eastern region, Suranto, said after opening Garuda Indonesia Frequent Flyers (GFF) Golf Tournament 2009 in Tabanan, Bali, on Friday.

He said Europe was an extraordinary market to tap. Garuda meanwhile plans to start flying to Amsterdam in the middle of 2010.

"We have longed for the lifting of the ban. We now have to prepare the time frame for entering there," he said.

The general manager of the Garuda Indonesia office here, Bagus Y Siregar, said Garuda as a national air carrier would continue to expand its market.

"This year we are still growing. A number of domestic routes have been reopened as well as international ones such as Hong Kong," he said.

Garuda, he said, has loyal and strong markets. To maintain the loyalty of its customers, he said, Garuda, would give its best service to them.

"The GFF Golf Tournament is one of the forms of appreciation we give to our customers. We always want to be the best for our customers," he said.

He said until now the number of GFF members had already reached 10,608. The best player in the tournament would be sent to international tournaments. The tournament offers Rp400 million in cash prize for players who make a hole-in-one.

"Many Garuda passengers holding GFF cards fly twice to three times a week," he said.

Source : Antara News