JAKARTA (Yosefardi) – Flag carrier PT Garuda Indonesia Tbk (GIAA) has 3 strategies for growth amid the weakening rupiah against the US dollar.
The airline would raise its ticket prices by 20%, opts for hedging to overcome potential loss in foreign exchange (forex), and convert part of operational financing into rupiah denomination.
GIAA spends US$1.5 billion for fuel per year.
Currently dollar financing for the operation reaches 70% of total financing, while 55% of total revenues is in rupiah. GIAA suffered loss of US$211.7 million in the first half of 2014.