April — June 2013

Highlights in this Issue >>> Garuda’s profits up 72 percent Garuda Indonesia Expands Domestic Flight Network through Medan Hub Garuda to spread its wings to London’s Gatwick in Q4 Garuda Indonesia Opens “Garuda Indonesia and Liverpool FC Experience” Garuda Indonesia named '2012 domestic airline of the year'

Garuda Updates GARUDA’S PROFITS UP 72 PERCENT recorded a decline in its on-time performance rate, which fell to 84.9 percent from the previous 85.7 percent in 2011. Several factors contributed to the decrease, Emirsyah said, citing weather problems and limited capacity at airports.

PT Garuda Indonesia (GIAA) enjoyed steady growth in 2012 as net profits soared 72.6 percent to US$110.6 million year-on-year, the national flag carrier announced on Wednesday. The publicly listed company attributed the net profit jump to higher revenues and its ability to maintain costs. Total revenues grew 12.1 percent to $3.47 billion last year. A majority of the figure came from scheduled airline with 83.1 percent, followed by non-scheduled airline with 7.7 percent and other businesses making up the remaining 9.1 percent. Garuda president director Emirsyah Satar said that during 2012, its operating expenses only climbed 10 percent to $3.3 billion, thanks to cost efficiencies. “Passenger numbers and average flight frequency surged, but expenses did not increase much,” he said. In 2012, Garuda’s passenger numbers rose 19.6 percent to 20.42 million. Passenger growth was supported by a higher frequency of both domestic and international flights and network expansion. For its domestic flights, average frequency reached 1,940 flights per week, compared to 1,750 flights per week in 2011, while for its international flights, the figure stood at 455

flights per week, up from 400 flights per week. Last year, Garuda saw its network expand with several new domestic and international destinations, such as Tarakan, North Kalimantan; Abu Dhabi, United Arab Emirates; Haneda, Japan; and Taipei, Taiwan. As a result, Emirsyah said, the airline was able to control significant shares in domestic and international markets. “We controlled 28.2 percent and 24.2 percent shares in domestic and international markets, respectively,” he added. To serve its markets, Garuda increased and rejuvenated its fleet by purchasing new aircraft. As of December 2012, Garuda owned a total 85 aircraft, a nine percent rise from the same period in 2011. Meanwhile its subsidiary, budget carrier Citilink Indonesia, had 21 aircraft by the end of last year. The figure increased more than double from 2011. However, despite reporting positive business growth, state-owned Garuda

“The [state-run airport operators] Angkasa Pura I and Angkasa Pura II are currently working to increase airport capacity. We hope to be able to maintain our on-time performance rate at 85 percent,” he added. This year, Garuda estimates that its passenger numbers will rise 15 percent to 20 percent to reach between 23.48 million and 24.5 million people. To anticipate the increase, it will set aside $300 million and $400 million for its capital expenditure (capex) budget, which will mainly be used to purchase new aircraft. The company hopes that its fleet will comprise a total of 139 aircraft by the end of 2013. Garuda also plans to introduce new destinations this year, such as Berau, East Kalimantan; Sorong, Papua; London, England; Brisbane, Australia; and Penang, Malaysia. To finance the expansion, Garuda will sell debt papers amounting to Rp 2 trillion ($205.65 million) in the second quarter of 2013. Garuda finance director Handrito Hardjono said that the company would use its own cash as well to fund the expansion projects.

Garuda Indonesia Singapore

GARUDA INDONESIA EXPANDS DOMESTIC FLIGHT NETWORK THROUGH MEDAN HUB In order to broaden its network, especially in the domestic sector, as well as improve service to its customers, as of Monday, 15 March 2013, Garuda Indonesia opened three routes simultaneously from Medan to several cities in Sumatera, namely Medan – Batam (vv), Medan – Padang (vv), Medan – Palembang (vv) and Padang – Pekanbaru (pp). The introduction of these new services from Medan is part of the plan to develop Medan as Garuda’s fourth Center of Distribution (hub) after Jakarta, Denpasar, and Makassar, to increase connectivity in Indonesia’s western region. The flight routes are served every day by Bombardier CRJ1000 NextGen aircraft which has a seat capacity of 96 seats, consisting of 12 seats in Executive Class and 84 seats in Economy Class. The flight from Medan to Batam (GA 270), leaves Medan at 10.40 LT and arrives in Pekanbaru at 12.00 LT. Meanwhile, the flight from Batam to Medan, GA 271 departs from Batam at 12.45 LT and arrives in Medan at 14.05 LT. The flight from Medan to Padang (GA 262) leaves Medan at 14.50 LT and arrives in Padang at 16.00 LT. As for the flight from Padang to Medan (GA 263), leaves Padang at 19.45 LT and arrives in Medan at 20.50 LT. For the flight from Medan to Palembang, GA 266 leaves Medan at 06.00 LT and arrives in Palembang at 07.40 LT. In the return flight from

Palembang to Medan, GA 267 departs from Palembang at 08.20 LT and arrives in Medan at 09.55 LT. The GA 264 flight from Padang to Pekanbaru leaves Padang at 16.45 LT and arrives in Pekanbaru at 17.30 WIB. Meanwhile, the flight from Pekanbaru to Padang (GA 265) leaves Padang at 18.10 LT and arrives in Pekanbaru at 19.00 WIB. In line with the hub’s development, in the future, passengers flying from Batam, Padang, and Palembang will be able to continue their flight from Medan to various international destinations in the region, such as Singapure, Kuala Lumpur and Penang, which will soon be opened. Garuda Indonesia President & CEO, Emirsyah Satar, said that the development of Medan as Garuda Indonesia’s fourth hub is part of the company’s “Quantum Leap 2011- 2015”. The establishment of Medan Hub is aimed to increasing connectivity in Indonesia’s western region. “To stimulate business, trade and tourism in the country, Garuda Indonesia will continue to increase connectivity in the eastern and western regions of Indonesia by opening new hubs and introducing new flight networks,” he said. “The development of the Medan hub and opening of new routes reflects Garuda Indonesia’s support towards the Economic Development and Expansion 2025 program (MP3EI) launched by the Indonesian government,” added Emir

Apart from the above routes, with the arrival of new additions to its fleet, Garuda Indonesia also plans to open new domestic routes in the near future, among others: Batam – Pekanbaru and Medan – Pekanbaru on May 1; Jakarta – Bengkulu, Jakarta – Tanjung Pandan on May 15; Surabaya – Denpasar on May 19, and an international service, Medan – Penang on June 1, 2013. To serve these routes, Garuda will operate Bombardier CRJ1000 NextGen aircraft which has a capacity of 96 seats, consisting of 12 seats in Executive Class and 84 seats in Economy Class. In May 18, Garuda Indonesia will also open the Denpasar – Bandung and Balikpapan – Denpasar service to step up business and tourism in the cities, operating Boeing 737-800 NG aircraft with a capacity of 156 seats, consisting of 12 seats in Executive Class and 144 seats in Economy Class. Passengers flying from Bandung and Balikpapan through Denpasar will be able to continue their journey to international cities in Australia, China, Japan and Korea. Furthermore, to increase connectivity between hubs, Garuda Indonesia will soon develop flights between hubs, called a “hub bypass“, such as Medan – Makassar, Medan – Denpasar, and Medan – Surabaya. Indeed, the routes in the “hub bypass” will offer passengers greater comfort in their travels, namely shorter flight time as there will be no need for transfers in Jakarta. Garuda Indonesia also plans to open Balikpapan – Banjarmasin, Balikpapan – Manado, Balikpapan – Berau and Jakarta – Tanjung Pinang routes.

Garuda Indonesia Singapore

GARUDA TO SPREAD ITS WINGS TO LONDON’S GATWICK IN Q4 Garuda Indonesia – the national airline for Indonesia – announced today that it has chosen Gatwick to operate direct flights between London and Jakarta, one of South East Asia’s largest hub airports. This will make Gatwick the only UK airport to connect passengers directly to the largest economy in South East Asia. From the fourth quarter of 2013, business and leisure passengers will be able to fly direct between Indonesia and the UK six times per week. Garuda Indonesia will operate Boeing 777-300 Extended Range aircraft capable of carrying over 300 passengers. The UK is now one of the largest markets to Indonesia with 160,000 people currently travelling to the region on business and leisure (source: Based on 2011 MIDT data). Indonesia is an increasingly important market for the UK. Bi-lateral trade is growing and in April 2012, during Prime Minister David Cameron’s visit to Indonesia, a partnership commitment to double trade (goods & services) by 2015 to £4.4 billion was announced. This new direct route will boost business activities between the two countries and help towards meeting that bi-lateral trade commitment. Prime Minister David Cameron said: "We want to link Britain up with the world's fastest growing economies. And good air links are vital to achieving that. This new route from London to Jakarta is good for British business and will help them to compete in the global race." Gatwick’s Chief Executive Stewart Wingate said: “We are delighted that Garuda Indonesia has chosen Gatwick to operate this vital direct route. Despite being a crucial high growth business market for the UK, Indonesia has been underserved with no direct routes to the region from the UK – until now. Jakarta is also a major hub airport for South East Asia, giving UK passengers even more access and choice to the region. “Whilst the UK is one of the best connected countries in the world, we do need more direct links to key markets

Jakarta—London route will be operating with the brand new B777-300ER, which will be equipped with Wi-Fi and a chef on board for First Class passengers. such as Indonesia. At Gatwick, we’re playing our part by investing in the airport and, with our airlines, opening new routes to growing economies such as China, Russia, Turkey, Vietnam and now Indonesia. We look forward to welcoming Garuda Indonesia later this year.” Garuda Indonesia’s President and CEO, Emirsyah Satar, said that the new Jakarta-London direct flight will complement the existing Jakarta – Abu Dhabi – Amsterdam route, as part of the airline's Quantum Leap 2011-2015 programme to develop the international network and become a ‘global player’. “This flight will be more convenient since it will be serving passengers - non-stop from Jakarta to London with the brand new B777-300ER, which will be equipped with Wi-Fi and a chef on board for First Class passengers. “We chose Gatwick, London as the UK airport because of its convenience and good network and accessibility options into Europe and beyond," Satar added. The Jakarta – London direct flight is also expected to open up direct access from South East Asia to Europe and vice versa.

In addition to the new London route, this year the airline will also open new Auckland and Brisbane routes. Garuda Indonesia has also expanded its flight network to Europe through codeshare agreements with other international airlines, including Etihad Airways, which enables passengers to fly into seven major cities across Europe. The Indonesian Ambassador to the UK, H.E Teuku Mohammad Hamzah Thayeb, has welcomed the initiative of Garuda Indonesia to resume the Jakarta – London route in the fourth quarter of 2013. “This route will certainly increase passenger and cargo traffic - not only between the two countries - but also from Europe to Indonesia and likewise in return. “With the increased business and tourism to Indonesia, it will not only help to improve the growth of the economy between Indonesia and UK, but also the overall relationship between the two countries,” said the Ambassador.

Garuda Indonesia Singapore

GARUDA INDONESIA OPENS “GARUDA INDONESIA AND LIVERPOOL FC EXPERIENCE” On Monday, 25 February PT. Garuda Indonesia (Persero) Tbk. and “Liverpool Football Club (LFC) officially opened the “Garuda Indonesia and Liverpool Experience”. The opening was symbolically carried out by Garuda Indonesia, President & CEO, Emirsyah Satar together with the Director of International Business Development Liverpool LC, Jonathan Kane, and legendary Liverpool player from the 1989-1990s, Ian Rush, at the Garuda Indonesia Gallery, in Senayan City, Jakarta. By opening the “Garuda Indonesia and Liverpool Experience” at the Garuda Indonesia Gallery in Senayan City, Jakarta, Garuda Indonesia brings fans in Indonesia closer to their favorite football club. The move is also part of the airline’s efforts to improve service towards its customers, notably those who are loyal LFC fans. At present, “Garuda Indonesia and Liverpool Experience” is the only Liverpool cobrand area in the world. In the “Garuda Indonesia and Liverpool FC Experience”, apart from offering a wide range of official Liverpool FC merchandise, Garuda In-

donesia customers will also be able to enjoy the unique experience of being at Liverpool’s homeground, Anfield Stadium. “Garuda Indonesia and Liverpool FC Experience” is also equipped with a “photo booth” complete with a “make up kit” that uses special quality “face paint” so that Garuda Indonesia customers will have the chance to capture the special moment and appear as if they are hardcore Liverpool fans, Liverpudlians, and photographed together with Liverpool players and Garuda flight attendants. Garuda Indonesia President & CEO, Emirsyah Satar explained that the cooperation between Garuda Indonesia and global brand, Liverpool FC is part of the airline’s “Quantum Leap” program to transform the company into a “Global Player”. “Liverpool FC is one of the best clubs in the English Premier League with a huge “global awareness” and more than one hunderd million fans worldwide, including in Indonesia. The launching of Garuda Indonesia and Liverpool FC Experience is one of the cooperative measures taken by Garuda Indonesia dan Liverpool FC to provide a one of a kind experience to Garuda customers who are also fans Liverpool FC in Indonesia”, added Emirsyah Satar. Meanwhile, Liverpool FC Director of International Business Development, Jonathan Kane expressed

his pleasure in the opening of the “Garuda Indonesia and Liverpool FC Experience”. “Indonesia has a strong and unique fan base that we are proud of. “Garuda Indonesia and Liverpool FC Experience” will give added value to Liverpudlians in Indonesia as they will not only have access to official Liverpool merchandise, but will also have the unique opportunity to experience the excitement of being at Anfield Stadium,” added Jonathan Kane. Previously in September 2012, Garuda Indonesia and Liverpool FC signed a partnership agreement that lasts for three seasons (2012-2015). Through the cooperation Garuda will become Liverpool’s “Global Official Airline Partner”. The Liverpool management also offers the chance for Garuda Indonesia to carry ot a “program campaign” marketing communication using various facilities owned by the club. Among them is installing a logo on the Light Emitting Diode (LED)” located around the field at Anfield Stadium, during every Liverpool match, which will be broadcasted by major TV networks around the globe. In addition, Garuda Indonesia also has access to interact with Liverpool’s 10 million “fans” in Liverpool’s official Facebook account and with one million “followers” in the club’s official Twitter account. In mid 2013, Garuda Indonesia will launch a Garuda Indonesia and Liverpool “co-brand” logo on Garuda Indonesia’s A330-200 livery.

Garuda Indonesia Singapore

GARUDA INDONESIA NAMED '2012 DOMESTIC AIRLINE OF THE YEAR' Garuda Indonesia, the airline of Indonesia, was voted ‘2012 Domestic Airline of the Year’ in the Customer Satisfaction Awards conducted in Indonesia by Roy Morgan, the Australian-based independent international research institute. The award was presented to Garuda Indonesia President and CEO, Emirsyah Satar by Roy Morgan’s Regional Director, Asia, Debnath Guharoy and its International President, Ira Soekirman in Jakarta. The ‘2012 Domestic Airline of the Year’ award was based on a survey conducted by Roy Morgan involving 28,000 consumers in Indonesia, in which each respondent was asked to evaluate all products and services used or consumed in the past year, including services by national airlines.

and SWP said: “We’re very pleased that our emphasis on customer service has being recognised and appreciated both domestically and by our Australian passengers.”

In Australia, Garuda Indonesia was also voted ‘The Best International Airline’ for three months in the 2012 Roy Morgan Customer Satisfaction Awards, beating Singapore Airlines, Air New Zealand, Emirates, and Cathay Pacific. The assessment was of airlines serving flights to Australia. Commenting on the new domestic award, Bagus Y. Siregar, Vice President for Garuda Indonesia Australia

The airline’s ongoing commitment to carrying out its business transformation and achieving significant improvements has earned it a number of accolades for the 2012 year: In July 2012, Garuda Indonesia was recognised as ‘The World's Best Regional Airline’ as well as ‘The Best Regional Airline in Asia’ by SkyTrax, the industry’s most prestigious recognition of excellence. Most recently, Skyscanner Asia Pacific Awards named Garuda Indonesia the Best Longhaul Airline Catering 2012.

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