Garuda Indonesia : Become Leading Airlines

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INTRODUCTION PT. Garuda Indonesia (Garuda) is the oldest flight company in Indonesia and owned by the government. In 2010, in its 60th anniversary-an age that should enter or in mature position- it showed more losses than profit (like shown in the 5 consecutive years of financial statement). In 2006 under the new leader of Emirsyah Satar Garuda started to change its strategy to make profit. The new strategies include synergize all operation level and embedded one new value, which is team work, to achieve company’s targets. These changes resulted in profit amount to IDR 975 billion in 2008 and IDR 1.018 trillion in 2009.
In the end 2010 Garuda planning to be a public company through IPO (Initial Public Offering). In order to do that,
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Internal Factor Analysis Internal factor analysis conducted through functional analysis covering Finance, Human Resource, Marketing, and Operations functions. 1. Finance (Horizontal analysis) PT. Garuda Indonesia experienced losses on 2005-2006 and started to gain profit in 2007-2009. Significant profit increase occurred in 2008 which was 538% compared to 2007 and profit growth declined to only 4.47% in 2009 due to increased fuel price, which increased operating expenses, and decreased revenue. 2. Human Resource There are three issues in human resources that need to be noticed. First is the increasing number of commercial flight company causes demand of aircrews (pilots, stewards, technicians) increases as well. For the time being, to fulfill the needs of the air crew Garuda recruits pilots from the existing flying school, and other air crews through its training centers. Second, the regeneration process for stewardess and leaders is considered slow. This can be seen from the age of stewardess serving the passengers (above 30 years old), while competitors hire stewardess whose age around 20-30 years old. The extension of Emirsyah Satar’s tenure has become an early clue that leaders regeneration in Garuda is going slow. Third, lack of trust to Garuda’s management comes from its employees is caused by asset sale (, Thursday, 10th May 2007), salary increase request, not transparent about salary

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