Garuda Indonesia yesterday (April 16, 2012) signed a deal with Auckland International Airport as part of a visit by New Zealand’s Prime Minister, John Key to the Southeast Asian country. The Memorandum of Understanding (MoU) was signed in the Indonesian capital by Garuda’s Chief Executive Officer, Emirsyah Satar and Board Chairman of Auckland International Airport, Joan Withers and was witnessed by Indonesian Minister of Trade, Gita Wiryawan, and the New Zealand Premier.
The contract represents the first stage towards Garuda resuming regular flights between Jakarta and Auckland. The airline last served the route in 2006 but with an interim stop in Brisbane, Australia. The route will commence “as soon as market conditions and aircraft availability allow,” according to Garuda executives, but sources close to the deal suggest that the new service will be launched in early 2013 following the delivery of new Airbus A330-300 equipment.
Speaking to The HUB at Routes Asia in Chengdu, China, Glenn Wedlock, General manager Aeronautical Commercial, Auckland International Airport was in jubilant mood. “This MoU follows years of market development activity by Auckland Airport and marks a significant step towards stronger trade and tourism links between Indonesia and New Zealand. Garuda Indonesia is a major global airline player with very strong network connections, and we are extremely pleased that they recognise Auckland and the region as an important part of their future plans,” he said.
Garuda has undertaken a significant business reorganisation over the past five years and is now embarking on a significant network expansion facilitated by new regional and short- and long-haul airliners. Indonesia is also rapidly transforming into a global economic powerhouse and with a population of around 240 million, it comprises around 45% of the ASEAN economy.
It is a young and mobile population too with over 42 million Facebook users in Indonesia, and by 2015 the number of millionaires is expected to triple according to a Credit Lyonnais Securities Asia (CLSA) wealth report. “That’s a significant market opportunity for Auckland and New Zealand by any measure,” highlighted Glenn Wedlock.
“The MoU signed today will include Auckland and New Zealand in those ambitious growth plans as soon as possible. Thanks to this MoU, and to other initiatives such as the recent announcement by Air New Zealand of seasonal flights from Auckland to Bali, we expect tourism between New Zealand and Indonesia to continue to benefit as awareness and market interest grows. It’s a massive opportunity for New Zealand tourism,” he added.
Auckland Airport has been working hard in the Indonesian market for over two years now developing market and air-service opportunities alongside the travel trade and the New Zealand Government. “Our ultimate goal is to use commercially driven strategies to build stronger connections with the fastest growing markets in the world, particularly in Asia and the America’s, in terms of both volume and wealth, and thereby create greater tourism value for New Zealand,” explained Glenn Wedlock. “It’s a very competitive endeavour though; the growth won’t just show up on our door-step, we have to chase it to gain and secure a foothold and we have to differentiate ourselves from the global competition.”
Garuda Indonesia will take advantage of a healthy demand for passengers between Indonesia and New Zealand but will also look to offer transfer services into Europe via its hub at Soekarno-Hatta International in Jakarta. New Zealand’s Ambassador to Indonesia, David Taylor, welcomed the MoU and described the potential new route as a “game-changer” for the relationship between the two countries and will offer tangible benefits to both countries through greater business, tourism and education travel.
You can hear more about the new route and further information on Auckland International Airport's network development in our exclusive video interview with Glenn Wedlock, General Manager Aeronautical Commercial, Auckland International Airport at Routes Asia in Chengdu, China, which will appear online later this month.
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