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Restore Aviation Sector, AP II and Garuda Strengthen Operational and Business Synergy in These 3 Aspects

19 Jun 2022

Jakarta - PT Garuda Indonesia (Persero) Tbk received approval for the peace proposal through voting which is part of the process of Postponing Debt Payment Obligations (PKPU).

PT Angkasa Pura II, as the manager of 20 airports in Indonesia, will continue to support and collaborate with Garuda in accelerating the recovery of the aviation sector and maintaining air connectivity in the country.

"The results achieved by Garuda are positive news, especially for the national aviation sector. AP II always supports and collaborates with Garuda to bring the national aviation sector to continue to grow, providing the best service for the community," said Muhammad Awaluddin, President Director of AP II.

President Director of Garuda Irfan Setiaputra expressed his gratitude to AP II for the support given to Garuda.

SOE Minister Erick Thohir also said that the positive results achieved by Garuda were the fruit of the support of all parties.

"We do not forget to express our appreciation to the Indonesian people who continue to believe in Garuda Indonesia, especially in this challenging time to provide the best flight services," said the Minister of SOEs.

Meanwhile, AP II and Garuda will strengthen synergy and collaboration in 3 aspects to support operations and business in a sustainable manner in order to provide the best service.

The three aspects are:

1. Operating efficiency
AP II and Garuda are in discussions to strengthen the implementation of Airport Collaborative Decision Making (A-CDM) at Soekarno-Hatta Airport.

"AP II and Garuda synergize to strengthen and fully implement A-CDM at Soekarno-Hatta Airport. The implementation of A-CDM can result in operational savings for Garuda, especially regarding aircraft fuel efficiency," explained Muhammad Awaluddin.

Through A-CDM at AP II airport, the congestion rate on the apron and taxiway of Soekarno-Hatta Airport can be reduced which then results in shorter taxi times for aircraft, shorter queues for take off and landing, thus leading to fuel savings for aircraft.

"A-CDM at Soekarno-Hatta Airport reduces airport and airline operational costs including Garuda so as to support more optimal flights, efficiency, including optimizing the use of aircraft," said Muhammad Awaluddin.

2. Customer Experience (customer experience)
AP II and Garuda synergize and collaborate to create a seamless journey experience, including preparing the best customer experience at the transit point from international routes to domestic routes at Soekarno-Hatta Airport.

"The synergy between AP II and Garuda provides a customer experience at the transit point for airplane passengers coming from abroad to continue flights on domestic routes. This strengthens Garuda services, which will focus more on serving domestic routes," Muhammad Awaluddin explained.

This synergy and collaboration continues what AP II and Garuda have been doing in presenting the best customer experience, one of which is the availability of self check-in machines at Terminal 3.

3. Business Enhancement (business development)
The synergy and collaboration between AP II and Garuda will also be carried out in the opening of domestic routes. AP II will guarantee the availability of flight time slots for airlines that will reopen flight routes.

"Currently the national aviation sector is entering a recovery period in line with good handling of the pandemic. Quite a number of flight routes have been reopened by airlines after being closed due to the pandemic and there are also many additional frequencies on routes that have been opened. We ensure that we will provide flight time slots to Garuda, including if operational adjustments are needed," Muhammad Awaluddin explained.

Regarding business development, AP II and Garuda also collaborate with PT Gapura Angkasa, a company engaged in ground handling services. Currently, AP II holds 46.62% shares in Gapura Angkasa, while Garuda holds 45.62% shares in Gapura Angkasa.

Muhammad Awaluddin said a number of expansion plans had been prepared for Gapura Angkasa as an effort to develop business and support the national aviation sector.

"Gapura Angkasa is encouraged to provide added value and contribute to the better for its shareholders, including AP II and Garuda."

"Gapura Angkasa's business is expanded to create new revenue from new business (new wave business), from now on the majority comes from ground handling services, it will also be expanded to passenger services, infrastructure services, cargo and special cargo handling," said Muhammad Awaluddin.

The synergy and collaboration between AP II and Garuda is expected to support and accelerate the recovery of the national aviation sector.