A New President for Garuda Indonesia

Arif Wibowo had been appointed President of Garuda Indonesia in December 2014. His Presidency however is unlikely to leave a strong legacy in the airline’s history. Less than two years and a half later, Garuda Indonesia President stepped down, just after presenting last week the annual results for the carrier in 2016.

Arif Wibowo succeeded to Emirsyah Satar, who had been the instrument to Garuda Indonesia recovery. Wibowo was president director of PT Citilink Indonesia, Garuda low cost affiliate, prior to move to the position of President Director of Garuda Indonesia.

Arif Wibowo has been removed as his predecessor has been embattled into the bribery scandal involving Rolls Royce. Plunging profits were also a cause to Wibowo replacement. The state-owned carrier’s operating profit fell 41% to $99.1 million in 2016, as expenses outpaced revenue growth. The carrier faced intense yield pressure on both domestic and international routes, which led net profit to fall 89% to $9.36million.

Wibowo has been replaced by Bank Mandiri’s President Director, Pahala Nugraha Mansury. The replacement decision was delivered after Garuda Indonesia’s Annual General Meeting of Shareholders (AGM) on April 12 in Jakarta.

With the arrival of Mansury, the composition of the Board of Directors was announced after the Shareholders General Meeting. The Board comprises also:
– Financial and Risk Management Director, Helmi Imam Satriyono
– Services Affairs Director, Nicodemus P. Lampe
– Production Director, Puji Nur Handayani
– Marketing Director and Information Technology, Nina Sulistyowati
– Human Affairs and General Affairs Director, Linggarsari Suharso

The changes are taking place as Garuda Indonesia is due to expand its intercontinental network this year. Indonesia national flag carrier plans to launch direct flights from Jakarta to Moscow in August 2017. Operated by Airbus A330-200, this route will be served 3 times a week. It could then generate an additional 100,000 travellers from Russia to Indonesia following the launching of the route.

In addition to Moscow, in the middle of this year, Garuda Indonesia will also launch Jakarta – Los Angeles via Tokyo. It will be an important event as Garuda closed down its US operations some 15 years ago. In Europe, the carrier is also looking at serving Germany until 2018.

In 2016, both Garuda and Citilink carried 35 million passengers while the average occupancy rate in 2016 was 73.1 percent for Garuda and 76.8 percent for Citilink. On-time performance was recorded at 89.51 percent, an increase compared to the previous year at 88 percent. In 2016, the group added 17 aircraft, namely four ATR 72-600 aircraft, four A330-300 aircraft, one B777-300ER aircraft and eight A330-200 aircraft. Garuda Indonesia Group fleet comprises now 196 aircraft with an average age of 4.6 years.