Garuda to serve Jayapura-Dekai route

Garuda to serve Jayapura-Dekai route

Photo document of ATR plane of Garuda Indonesia in Juanda International Airport, East Java. (ANTARA/Theresia May)

Hence, we are planning to start flight services locally in Papua Province."
Jayapura (ANTARA News) - Flag carrier Garuda Indonesia plans to open the Jayapura-Dekai route in Yahukimo District, Papua, after the state-owned airline company identified a relatively high potential in serving the route.

"We are planning to start flights on the route from Jayapura to Dekai, probably in July 2017," Garudas Sales and Marketing Manager for Jayapura Octavianus J. H. Tampi stated here on Monday.

He noted that Garuda will use 70-seater ATR aircraft.

"We have identified the routes potential. Hence, we are planning to start flight services locally in Papua Province," Tampi remarked.

The Garuda manager pointed out that the carrier will use new aircraft to daily serve the new route to the Nop Goliat Airport in Dekai.

"We plan to fly every day. The route could be Jayapura-Dekai-Timika," he added.

Earlier in Lombok, West Nusa Tenggara, Garuda President Director Arif Wibowo stated that Garuda had outlined anticipatory steps to face tough competition in the aviation sector in 2017.

"We have prepared anticipatory steps in the face of possible oil price hikes in the global market and fluctuations in foreign currencies," Wibowo noted on the sidelines of a joint anniversary celebration of 22 state-owned enterprises in Lombok, West Nusa Tenggara, on Saturday.

He remarked that as part of its strategies, the national flag carrier Garuda has pegged the assumed price of avtur, or aircraft fuel, and has conducted hedging of foreign currencies to anticipate fluctuations.

According to Wibowo, the global economy, which is forecast to have not yet fully recovered, has a major impact on the aviation business.

Based on the assumption of an increase in the avtur prices, Garuda has fixed an assumed price of 57 US cents per liter.

"Oil price is the main factor in the context of cost strategy, as it could have a direct impact on the performance in 2017," he added.

Garuda has also applied hedging in a bid to protect the value of the companys loan payments from fluctuations in the foreign currency exchange rates.

However, Wibowo declined to reveal the value of hedging, merely saying that the step is intended to protect the companys financial balance from the adverse impact of the weakening of the rupiah.

He said that despite stiff competition among airlines in 2017, Garuda has set a passenger growth target at 8.7 percent, higher that the aviation industrys projection at 6.9 percent.