Garuda Indonesia is the flag carrier of Indonesia, headquartered at Soekarno–Hatta International Airport. A successor of KLM Interinsulair Bedrijf, it is a member of SkyTeam and the second-largest airline of Indonesia after Lion Air, operating scheduled flights to a number of destinations across Asia, Europe, and Australia from its hubs, focus cities, as well as other cities for Hajj. It is the only Indonesian airline that flies to the European airspace.
At its peak from the late 1980s to the mid-1990s, Garuda operated an extensive network of flights all over the world, with regularly scheduled services to Adelaide, Cairo, Fukuoka, Johannesburg, Los Angeles, Paris, Rome and other cities in Europe, Australia and Asia. In the late 1990s and early 2000s, a series of financial and operational difficulties hit the airline hard, causing it to drastically cut back services. In 2009, the airline undertook a five-year modernization plan known as the Quantum Leap, which overhauled the airline's brand, livery, logo and uniforms, as well as newer, more modern fleet and facilities and a renewed focus on international markets, and earning the airline awards such as Most Improved Airline, 5-Star Airline, and World's Best Cabin Crew by Skytrax.
The airline also operated a budget subsidiary, Citilink, which provided low-cost flights to multiple Indonesian destinations and was spun-off in 2012. In November 2018, the airline took over operations as well as financial management of Sriwijaya Air by a cooperation agreement (KSO). This partnership expired in December 2019.
The earliest predecessor to Garuda Indonesia was KNILM, Royal Dutch Indies Airways, founded in 1928 during the Dutch colonial period; despite the similar name, it was not a subsidiary of the main Dutch carrier KLM. KNILM was dissolved in 1947, and its assets were transferred to a new KLM subsidiary, KLM Interinsulair Bedrijf (KLM Interinsular Service), which was nationalized in December 1949.
In its current institutional form, Garuda Indonesia had its beginnings in the Indonesian war of independence against the Dutch in the late 1940s, when Garuda flew special transports with a Douglas DC-3. The first aircraft was a DC-3 known as Seulawah (Acehnese: "Gold Mountain", or from Arabic Shalawah, means praise/worship) and was purchased for a sum of 120,000 Malayan dollars, which was provided by the people of Aceh (notably local merchants). The first commercial flight from Calcutta to Rangoon was made on 26 January 1949, using a DC-3 Dakota aircraft with the tail number of "RI 001" and the name "Indonesian Airways".The 26 January 1949 is generally recognized as the airline's founding date.
The name Garuda is taken from the Hindu tradition, which is the name of Lord Vishnu's mount (vahana) and was introduced in 1949. During the Dutch–Indonesian Round Table Conference at The Hague, from 23 August to 2 November 1949, Indonesian President Sukarno cited a Dutch poem written by a renowned Javanese scholar and poet Raden Mas Noto Soeroto: "Ik ben Garuda, Vishnoe's vogel, die zijn vleugels uitslaat hoog boven uw eilanden", which means "I'm Garuda, Vishnu's Bird, that spreads its wings high above the Islands". The first flight under the name of "Garuda Indonesian Airways" was made with a second DC-3 entering service in 1949: Its first flight, under the new name, carried Sukarno from Jakarta to Yogyakarta on 28 December.
Throughout the revolution, Garuda supported national interests and often carried diplomats on its flights. The Burmese government helped the airline significantly during its beginnings. The country's national airline, Union of Burma Airways, often chartered one of the airline's DC-3s for its own flights. Accordingly, upon Garuda's formal joint incorporation with KLM on 31 March 1950, the airline presented the Burmese government with a DC-3 as a gift.
By the early and mid-1950s, the airline operated a fleet of 38 aircraft, which included 22 DC-3s, 8 Catalina seaplanes, and 8 Convair 240s, and in 1956, the airline operated its first flight to Mecca with Convair aircraft, carrying 40 Indonesian pilgrims.
The airline's fleet continued to grow throughout the 1960s, during which time the airline continued its expansion. It acquired three Lockheed L-188 Electras in 1961, which supplemented its Convair CV-240 fleet, before taking delivery of its first jet aircraft, the Convair 990 Coronado, in 1963, which allowed it to launch flights to Hong Kong.
In 1965, the airline took delivery of its first Douglas DC-8, and grew beyond the Asian market it was focused on, beginning scheduled flights from Kemayoran Airport to Amsterdam and Frankfurt via Colombo, Bombay, and Prague. Rome and Paris became the airline's third and fourth European destinations, with flights stopping in Bombay and Cairo to refuel. Flights to the People's Republic of China began that same year, with service to Guangzhou via Phnom Penh, the first Indonesian airline to do so.
During the early 1970s, Garuda Indonesia took delivery of both the McDonnell Douglas DC-9 and Fokker F28 Fellowship for its short and medium-haul operations. The airline went on to take delivery of 62 F28s, holding the title for the largest operator of the F28 in the world. In 1976, the airline took delivery of its first Douglas DC-10, giving it the capability to carry more passengers and fly longer flights, and it replaced the DC-8 and Convair 990 fleet on flights within Asia and to Europe. The DC-10 would become an integral part of the Garuda fleet for the years to come, outlasting the newer McDonnell Douglas MD-11s, before the type was finally retired in 2002. Afterwards, in 1980, the airline took delivery of the first Boeing 747-200, complementing the DC-10 on high-capacity or long-range routes.
On 21 June 1982, Garuda became the launch customer of the Airbus A300B4-220FFCC, which was the first variant of the A300 capable of being operated with two pilots instead of three. By 1984, nine of these were in service, supplemented by 8 Douglas DC-10s, 24 Douglas DC-9s, 45 Fokker F-28s, and 6 Boeing 747-200s. In 1985 under Reyn Altin Johannes Lumenta, who had been CEO since 1984, Garuda made the controversial decision to hire foreign brand consultants Landor Associates to create a new logo, livery and brand for the airline, a project that was regarded as expensive and unnecessary at the time. However, this move was later on applauded as vital for the reputation and corporate identity of Garuda Indonesia as the national airline.
Under Lumenta, Garuda also increased the number of flight frequencies and destinations, reduced ticket prices and collaborated with Merpati Nusantara Airlines, introducing flexible tickets valid for both Indonesian airlines.
In 1990, the airline took delivery of the Douglas MD-11s, which gradually replaced the DC-10 on flights to Europe, and also allowed the airline to launch flights to Los Angeles via Honolulu. During this time, the airline operated a fleet of the aforementioned MD-11s, DC-10s, 747, Airbus A300 and Boeing 737-400, operating it to destinations throughout Asia, Europe and North America. In 1994, the airline took delivery of its first Boeing 747-400 aircraft, which would go on to become a mainstay of its fleet until 2015, operating hajj flights and high-density short-haul routes, while the delivery of the first Airbus A330-300 in 1996 allowed more flexibility for the airline, as it was more fuel-efficient than the three- and four-engine jets. That same year, the airline placed an order for six Boeing 777 aircraft, due for delivery in 2000, however, a new series of challenges and difficulties were about to hit the airline.
The late 1990s and early 2000s would prove to be a turbulent and difficult time for the airline; two separate accidents in Fukuoka in 1996 and Medan in 1997 added to the problems being caused by the 1997 Asian financial crisis, resulting in a drastic reduction in operations, including the termination of service to the Americas and a massive scaling back of its European operations. Largely due to historical links with the Netherlands, Garuda continued to operate flights to Amsterdam after the initial cutbacks. The other European routes continued were Frankfurt and London. However the flights to Frankfurt and London were discontinued in 2003. While the Amsterdam route was discontinued on 28 October 2004. The situation was exacerbated by the 11 September 2001 terrorist attacks in the U.S., the Bali bombings, the 2004 Indian Ocean earthquake and tsunami, and the SARS scare, all of which contributed to a downturn in air travel and Indonesian tourism. As a result, its earlier order for the Boeing 777 was deferred, and so was an order for 18 Boeing 737-800s to replace its ageing 737 Classic fleet. However, by 2005, the airline had largely recovered from its economic problems, swapping its order for six Boeing 777-200ERs for 10 Boeing 787-8 Dreamliners in 2005, but its operational problems would remain.
On 7 September 2004, Garuda's reputation suffered further damage when human rights activist Munir Said Thalib, traveling to Amsterdam via Singapore on Garuda Indonesia Flight 974, was assassinated by off-duty pilot Pollycarpus Priyanto, who slipped arsenic into his drink some time before the departure of the flight's second leg to Amsterdam. Munir was reported to have felt unwell several hours after departure from Singapore, during which time he was checked on by a doctor who happened to be on board, and moved to the business class cabin to sleep. He died approximately two hours before arrival into Amsterdam, sparking an international controversy, during which time Priyanto, along with CEO Indra Setiawan and deputy Rohainil Aini, were all convicted of his murder, although it has been alleged it was under orders from the Indonesian State Intelligence Agency (Badan Intelijen Negara). The airline was found negligent in failing to perform an emergency landing and was ordered to pay compensation to Munir's widow, but failed to do so.
In June 2007, the EU banned Garuda Indonesia, along with all other Indonesian airlines, from flying into any European countries, following the crash of Flight 200 earlier that year. With the support of the international aviation industry for all Indonesian airlines, the EU promised to review its ban and sent a team of experts, led by the European Commission's Air Safety Administrator Federico Grandini to Indonesia to consider lifting the ban. In August 2007, the transportation minister of Indonesia announced that the EU would lift its ban hopefully sometime in October, stating that the ban was attributed to communication breakdown between the two parties and that discussions were in progress.
In November 2007, Garuda announced its intention to fly to Amsterdam from Jakarta and Denpasar with either Airbus A330 or Boeing 777 aircraft if the EU lifted its ban, however, on 28 November 2007, the EU stated that the safety reforms already undertaken were a step in the right direction for the EU to consider lifting the ban, but still did not satisfy the EU's aviation safety standards, and thus, did not lift its ban. The ban was lifted in July 2009, after which Garuda began evaluating service to Amsterdam and other European destinations, as well as the United States.
Following the lifting of the EU ban against Garuda Indonesia and three other Indonesian carriers, the airline announced in July 2009 an aggressive five-year expansion plan known as the Quantum Leap. The plan involved an image overhaul, including changing the airline's livery, staff uniform and logo, and nearly doubling the size of its fleet from 62 to 116. The Quantum Leap also plans to boost annual passenger numbers to 27.6 million in the same period, up from 10.1 million at the time of program launch through increasing domestic and international destinations from 41 to 62. Route expansions included Amsterdam, with a stopover in Dubai, in 2010. As of 2014, Garuda flies to Amsterdam non-stop five times a week using a Boeing 777-300ER with continuing service to London, with the sixth weekly service to be added by the end of 2015. Other European and American cities such as Frankfurt, Paris, Rome, Madrid and Los Angeles are being considered for reopening.
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