Garuda seeks new European sources, hitches on Czech deal

GARUDA Indonesia has sealed a commercial cooperation agreement with Czech Airlines that will see the latter become a feeder source to its European hub in Amsterdam.

The agreement, signed on February 23, covers passenger codeshare, joint marketing and promotion, maintenance, repair and overhaul, and training.

Dian Ediono, general manager for continental Europe and Russia, Garuda Indonesia, said the codeshare turns the Czech Republic into a feeder market for Amsterdam and that the airline is seeking similar partnerships with airlines from countries neighbouring the Netherlands, though he was unable to disclose which ones.

“There are opportunities to develop other source markets now that we are a (premium) airline and flying the new Boeing 777-300ER (in three classes). We can cater to all segments – tourists and business travellers alike,” said Dion.

Welcoming the move, Herman Rukmanadi, managing director of Bhara Tours, said that while direct flights from Europe would be the best scenario for tour operators, developing feeder markets through codeshares is “one step forward”.

“Taking Garuda means a shorter flight time to Jakarta, with good connections to domestic routes at a more economical price for travellers,” he added.

But Rocky Praputranto, operations director of Panorama Destination, said: “I’m not sure what the extent of cooperation with Czech Airlines is, but what we actually need is a Garuda GSA in the Czech Republic that can push sales for the airline.”

A ready market for Garuda’s Amsterdam-Jakarta connection exists, as evidenced by the feeder markets using KLM flights, but the carrier must drum up awareness beyond the capital of the Netherlands, he said.

Garuda flies Jakarta-Amsterdam-London four times a week in the low season from January to March and five times weekly the rest of the year.

Dion said Garuda is aiming to make the service a daily one.

Marintour Indonesia’s executive director, Ismail Ali, expected that Garuda’s recruitment of feeder markets would not dilute the potential of the sizeable Dutch market.

“Our partner (in the Netherlands) uses Garuda a lot and we receive groups and FITs flying Garuda every week,” he said. “What Garuda needs is to work with preferred tour operators there to continue developing business from the Netherlands.”

Read more stories in TTG Asia-ITB Berlin 2015 Daily

Sponsored Post