Garuda Indonesia: The pandemic is altering aviation industry’s face

Image illustration – www.garuda-indonesia.com

Written by Student Reporter (Erwin Josua, EMBA 2021)

The covid-19 pandemic had decreased the number of airline passengers that leads to financial problems. That situation had been undergone by state-owned airline Garuda Indonesia as well. 

President Director & CEO of Garuda Indonesia, Irfan Setiaputra mentioned this at a virtual guest lecture held by MBA Jakarta, Tuesday (9/02/2021). The pandemic has altered the face of the aviation industry. Yet, airlines now have a greater understanding of the basics of this business with Covid-19.

“Mobilization constraints are very restricted between one region and another. The impact felt for this sector comes in a drastic reduction: in the number of passengers experienced by many airlines to financial problems,” Irfan said. 

He also stated that the situation was a major turning point for the company. The focus of the business had been shifting from human to cargo mobility.

Yet, this major change did not decline the quality and standard facilities of Garuda Indonesia. “In addition to improving air quality through High-Efficiency Particulate Air (HEPA) technology, we will continue to implement government policies regarding distancing or infrequency among passengers. We decided that this was not only for the sake of the company but for the sake of our safety and security,” Irfan added. 

Garuda Indonesia pledged to continue the improvement of their services to consumers. He believed that there was no limit to growth.

Public Service vs Profits

On the other hand, Irfan stated about the debate on the position of state-owned corporations as a public service and as a naturally profit-seeking corporation. There are not two conflicting things essentially between public service and the search for benefit. 

“The dichotomy regarding public service and seeking for profit in public companies is not an option. I myself am committed to providing both. At the end of the day, Garuda Indonesia is here to continue serving, not just the end of the book,” he added. 

At the end of his lecture, he expressed his expectation that Garuda Indonesia would continue to make its best contribution to the nation’s interests, connect many regions, and unite citizens from various regional backgrounds. Its aim is to promote Indonesia to the international stage