SWOT Analysis Garuda Indonesia Airlines Essay

The SWOT analysis is an appraisal of the organization’s internal resources and abilities and the external environment’s chances and menaces. In order to place a strategic niche that the organisation might work. it is needed to analyse the SWOT of Garuda Indonesia.

1. Strength
Internally. Garuda Indonesia has some strength. such as:
Good services. it was proved by three awards that have been received. ICSA Award in 2001 ( Indonesian Customer Satisfaction Award ) in the class of Entire Customer Satisfaction and besides Best On Time Airline Award from Schiphol International Airport Amsterdam.

Good trade name. proved by two awards received in 2001 from Mark Plus & A ; Co for Experimental & A ; Emotional Branding Champion. and in 2002 received from MARS & A ; SWASEMBADA Magazine for the most valuable trade name in air hose class.

Good finance. After traveling through a tough negotiating procedure and wining in finishing its debt restructuring. Garuda was awarded the ” Best Corporate Finance Deal of the Year 2001 ” from Air finance Journal-London on April 8. 2002

Good information system. it is proved by two awards. First. it comes from PT SAP Indonesia awarded Garuda Indonesia on 17 October 2000 its “Best Execution of 1999” award. The SAP system is an integrated informations package processing system incorporating faculties covering accounting. finance. plus direction and human resource direction etc. Second. award from DNV ( Det Norto Veritas ) . A Netherland –based standard enfranchisement institute. presented Garuda Information Systems with an ISO-9001 Certificate on 25 May 2000.

Good direction. it is proved by an award for Pioneer: Crisis Busting Award. Travel Weekly East Magazine. Singapore. presented Garuda Indonesia Innovators Award 2001 Airline ( International ) : Crisis Management. Awards are given to establishments. concerns and single as an recognition of their extraordinary accomplishments or to those who have succeeded in formulating and transporting out an advanced construct or thought.

Good Human Resources Development.

The pilot is known as good pilots that are wanted by many air hoses. The expert cognition of the Garuda Indonesia pilots is every bit impressive as the technological admirations they fly. Garuda pilots are one of the most experient pilots in the universe. Among 642 pilots that Garuda Indonesia has. 306 pilots are Captains with the equivalent of 408. 294 flying clip. or an norm of 13344 flying clip each. To further hone the capablenesss of Garuda Indonesia’s pilots. they are strictly trained and on a regular basis tested in state-of-the-art flight simulators located at the Company’s modern GAT preparation installation in Jakarta. Garuda besides have a good preparation plan. It is proved by International Standard Training Garuda Aviation Training received an ISO-9001 certification on 26 January 2000 from TUV. a German-based criterions enfranchisement institute.

Good care service.

Administration ( FAA ) on 28 February 2000 announced the Garuda Maintenances Facility had fulfilled demands as an “approved fix station” in conformity with FAR 145. and had satisfied the quality warrant needed to transport out care. including engine and aircraft constituents. on aircraft owned by US air hoses.

Good and modern aircraft.

Garuda Indonesia’s fleet is supported by 47 aircraft. which consists of five types of excellent-functioned aircraft. 37 of these aircraft are reasonably new and are added to the fleet to phase out older. obsolete aircraft. The new aircraft include three Boeing 747-400s and 19 Boeing 737s. Garuda Indonesia’s fleet is supported by 47 aircraft. which consists of five types of excellent-functioned aircraft. 37 of these aircraft are reasonably new and are added to the fleet to phase out older. obsolete aircraft. The new aircraft include three Boeing 747-400s and 19 Boeing 737s.

2. WEAKNESSES
Scaning the internal environment is besides utile to happen Garuda Indonesia failings. After carefully observation from some literature beginning. it was found that the failings of Garuda Indonesia can be classified in four points.

1 ) Financial job that is most comes from the large debt and the diminution of earning.

Detailss as follows: Even. successfully for debt restructuring on 1998. but in this period the debt still large and in other side. unluckily gaining that is targeted equal to US $ 1. 2 million estimated to travel down 18 % because of the diminution of gross revenues. Still confronting a large job in capital construction. Garuda have a large sum of debt and should be able to pay by installments so that is non threated as default. Till foremost quarterly 2003. debt place Garuda is equal to Rp. 6. 121 Trilliun. The job of this payment is more critical because of the diminution of net incomes. Operating income of Garuda during 2002 was worsening become Rp. 9. 87 Trilliun.

2 ) Human Resources Problem

There are a acute struggle between employee and direction. Audit happening that Garuda Indonesia is over-employees. This clip Garuda employees more than 9. 089 people. by 1. 906 without clearly place.

3 ) Customer Relationship Problem

Compared to other air hose in ASEAN. Garuda is non pertained large air hose house. Harmonizing to the e-research consequence. it found that client still have complaint on Garuda services particularly in dated amusement system. pilot proclamations. unstimulating sofas. no frequent circular plan and public perceptual experience.

4 ) Barriers of Implementation of the scheme

Struggle from subordinates employee that are decline spin-off scheme. On rt6May. 2003 counted 641 technicians. from 25 domestic airdrome and 5 abroad endangering to carry on direct action protest this scheme. No good communicating between direction and employee about its scheme.

EXTERNAL ENVIRONMENT
1 ) Opportunity
Global air hose industry: The worsening of planetary market that was caused of the September 11. made more than 1. 000 aircraft abroad was grounded. This status has made air hose in US acquiring job with idled a big figure of rider jets and made them available for renting at reduced rates. Medium scope jets as a Boeing 737-300 can be picked up for $ 45. 000 a month. compared to $ 120. 000 two old ages ago. For Indonesia air hose it is an chance. air hose house could added its aircraft with lower cost. Travel is the primary agencies of acquiring around the country’s 13. 000 islands scattered over an country the size of the United States. Economy: Overvalued currency- doing it easier to pay fixed costs pegged in U. S dollars Financial job in most new rival air hose.

Industry: Domestic flight: In old ages 2002. domestic air hose industry. particularly in Jawa Timur Province was growing 34. 52 % . Jakarta – Surabaya is the busiest path. for Garuda it gives the highest part is 70 % .

Customers: Estimated that there will be 9. 7 million possible air rider in 2003 and 10. 4 million in 2004 in Indonesia

2 ) THREATH
Government: The authorities ordinance about mention duty that is excessively low ( SK Dirjen Perhubungan Udara No. 35 ) Rivals: There are some of new domestic air hose rival come in air hose industry such as: Lion Airlines. Tiger Air. Batavia Air. Air Asia. Susi Air. Supply concatenation: In the leasing universe market. the secondhand aircraft monetary values are bead. Even though this status spring advantages. cause Indonesia domestic airliner can rent by lower monetary value. but in other side for Garuda itself. this status make a serious job. New rival can add its aircraft. and so do low-cost and low monetary value scheme. It makes the competition in domestic path become so tight. Further. monetary value war in Indonesia domestic air hose industry can non deny any longer.

Strengths
-existing distribution webs
-domestic market is big

Failings
-too many revenue enhancements
-low debt evaluation
-small concern
-low profitableness
-low investings in research and development
-no trade names





Opportunities
-venture capital

Menaces
-increasing costs
-external concern hazards

PT Garuda Indonesia ( Persero ) Tbk is a supplier of rider and lading air hose services in Indonesian and international market. The company’s services portfolio includes computerized reserve system. aircraft care and inspection and repair services. catering and fining solutions. It besides offers travel and transit services. and land handling services. Garuda Indonesia serves 61 paths in Indonesia. Southeast Asia. Australia. China. Japan. Korea. the Middle East and Europe. The company operates a fleet of 89 aircraft. consisting 14 widebody aircraft aircraft. 67 narrowbody aircraft aircraft and eight Citilink aircraft. Garuda Indonesia is headquartered in Jakarta. Indonesia.

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