Beginnings (1949–60s) Seulawah, the first Garuda Indonesia aircraft on display in
Taman Mini Indonesia Indah,
Jakarta. It is a contribution from the
Acehnese people.|alt=refer to caption The predecessor to Garuda Indonesia was a
KLM subsidiary,
KLM Interinsulair Bedrijf (KLM Interinsular Service), which was nationalized in December 1949. In its current institutional form, Garuda Indonesia had its beginnings in the
Indonesian war of independence against the Dutch in the late 1940s, when Garuda flew special transports with a
Douglas DC-3. The first aircraft was a DC-3 known as
Seulawah (Acehnese: "Gold Mountain", or from Arabic Shalawah, means praise/worship) and was purchased for 120,000
Malayan dollars, which was provided by the
people of Aceh (notably local merchants). The first commercial flight from
Calcutta to
Yangon (then,
Rangoon) was on 26 January 1949, using a DC-3 Dakota aircraft with the tail number RI 001 and the name Indonesian Airways. 26 January 1949 is generally recognized as the airline's founding date. -55 at
Kai Tak Airport in 1967|alt=A Garuda Indonesia Douglas DC-8 at Kai Tak Airport in 1967, showing an older livery The name
Garuda is taken from the
Hindu tradition: it is the name of Lord
Vishnu's mount (
vahana) and was introduced in 1949. During the
Dutch–Indonesian Round Table Conference at The Hague, from 23 August to 2 November 1949, Indonesian President
Sukarno cited a Dutch poem by a renowned Javanese scholar and poet Raden Mas
Noto Soeroto: "''Ik ben Garuda, Vishnoe's vogel, die zijn vleugels uitslaat hoog boven uw eilanden''", which means "I'm Garuda, Vishnu's Bird, that spreads its wings high above the Islands". The first flight under the name Garuda Indonesian Airways was made with a second DC-3 entering service in 1949. Its first flight under the new name was to pick up Sukarno in Yogyakarta on 28 December. Throughout the revolution, Garuda supported national interests and often carried diplomats on its flights. The
Burmese government helped the airline significantly during its beginnings. The country's national airline,
Union of Burma Airways, often chartered one of the airline's DC-3s for its own flights. Accordingly, upon Garuda's formal joint incorporation with
KLM on 31 March 1950, the airline gave the Burmese government a DC-3. By the early and mid-1950s, the airline operated a fleet of 38 aircraft, including 22 DC-3s, 8
Catalina seaplanes, and 8
Convair 240s. In 1956, the airline operated its first flight to Mecca with Convair aircraft, carrying 40 Indonesian pilgrims. In 1991, Garuda took delivery of the
McDonnell Douglas MD-11s, due for delivery in 2000, but a new series of challenges and difficulties were about to hit the airline.
Difficult period (1996–2004) of Garuda at
Sepinggan International Airport in 2001|alt=refer to caption The late 1990s and early 2000s proved a turbulent and difficult time for Garuda; accidents in
Fukuoka (Flight 865) in 1996 and
Medan (Flight 152) in 1997 added to problems caused by the
1997 Asian financial crisis, resulting in a drastic reduction in operations, including termination of service to the Americas and a massive scaling back of its European operations. Largely due to historical links with the
Netherlands, Garuda continued to operate flights to Amsterdam after the initial cutbacks. The other European routes that continued were Frankfurt and London. However, Garuda attempted to launch its first non-stop flight from Jakarta to Europe with a Jakarta to Frankfurt service, continuing on to London and back on October 28, 2001, as Garuda Indonesia Flights 970 and 971, the route was short-lived and the route was axed in early 2002 due to the effect of tourism caused by the attacks in the US on September 11 the previous year, along with the ditching of Garuda Flight 421 earlier that year. Finally, both routes returned back to one-stop services until they were discontinued in 2003, with the Amsterdam route discontinued the following year on 28 October 2004. The situation was exacerbated by the
11 September 2001 terrorist attacks in the U.S., the
Bali bombings, the
2004 Indian Ocean earthquake and tsunami, and the
SARS scare, all of which contributed to a downturn in air travel and Indonesian tourism. Shortly after, its earlier order for the Boeing 777 was deferred, and so was an order for 18
Boeing 737-800s to replace its ageing 737 Classic fleet.
Munir murder (2004–2006) On 7 September 2004, Garuda's reputation suffered further damage when human rights activist
Munir Said Thalib, travelling to Amsterdam via Singapore on Garuda Indonesia Flight 974, was assassinated by off-duty pilot
Pollycarpus Priyanto, who slipped arsenic into his drink sometime before the departure of the flight's second leg to Amsterdam. Munir was reported to have felt unwell several hours after departure from Singapore, during which time he was checked on by a doctor who happened to be on board and moved to the business class cabin to sleep. He died about two hours before arrival in Amsterdam, sparking an international controversy, during which time Priyanto, CEO Indra Setiawan, and deputy Rohainil Aini were all convicted of his murder, although it has been alleged it was under orders from the
Indonesian State Intelligence Agency (Badan Intelijen Negara). The airline was found negligent in failing to perform an emergency landing and was ordered to pay compensation to Munir's widow, but failed to do so.
European ban (2007–2009) In June 2007, the EU banned Garuda Indonesia and all other Indonesian airlines, from flying into any European countries, On 28 November 2007, the EU said that the safety reforms already undertaken were a step in the right direction for the EU to consider lifting the ban, but still did not satisfy the EU's aviation safety standards, and thus did not lift its ban. The ban was lifted in July 2009, after which Garuda began evaluating service to Amsterdam and other European destinations, as well as the United States.
Developments after the lifting of ban (2009–2020) Following the lifting of the EU ban against Garuda Indonesia and three other Indonesian carriers which were Lion Air, etc, the airline announced in July 2009 an aggressive five-year expansion plan known as the
Quantum Leap. The plan involved an image overhaul, including changing the airline's
livery, staff uniform and logo, and nearly doubling the size of its fleet from 62 to 116. As part of the
Quantum Leap, the airline refreshed its logo and redesigned its livery in 2009, more than 20 years after the last update. New uniforms were introduced in 2010. In 2010, the airline placed a firm order for six additional Airbus A330s at the 2010
Farnborough Airshow, while it opened a new hub at
Sultan Hasanuddin International Airport,
Makassar, South Sulawesi to increase services to the eastern part of Indonesia on 1 June 2011, its third after
Jakarta and
Denpasar. In 2013, Garuda's won the
Skytrax World's Best Cabin Crew Awards, and in 2018, Garuda's won the awards again for the fifth consecutive year. During this period, the airline also added additional frequencies to many of its international routes, including to Singapore, Bangkok, Beijing and Shanghai from Jakarta, while it also added capacity to Denpasar-Seoul. At the Paris Air Show 2011, Garuda Indonesia announced a firm order of 25 Airbus A320s with an option for another 25. All 25 Airbus A320s are to be used by their subsidiary,
Citilink The airline's earlier order for the
Boeing 787, made in 2005, was changed once more, due to the delays in the 787's entry into service. Garuda opted to sign for 10
Boeing 777-300ERs instead, which it would take delivery of in 2013 to use on long-haul flights to Europe, and medium-haul flights within Asia, such as to Japan, China, Singapore and Saudi Arabia, as well as short-haul domestic routes between Jakarta and Denpasar. The airline made its debut on the
Indonesia Stock Exchange in February 2011, with the
government of Indonesia retaining a majority of the shares. PT Trans Airways bought 10.9% stake of Garuda Indonesia unsold IPO shares from underwriters on 27 April 2012. The transaction was valued at Rp 1.53 trillion ($166.8 million). In late 2014, the airline became one of seven airlines to earn the prestigious 5-star rating from
Skytrax, marking the end of the five-year
Quantum Leap program. Following this announcement, Emirsyah Satar, who had been CEO for the past nine years, announced his resignation and retirement and promoted former Citilink chief Arif Wibowo as his successor. Following Wibowo's promotion, he began a "Quick Wins" cost-cutting drive to cut down on losses while boosting revenue through various measures, including cancelling unprofitable routes and increasing staff efficiency. Despite this, Wibowo remained committed to continuing the airline's international expansion, particularly once market conditions, such as the weakening rupiah, improved. This was reaffirmed following the airline's announcement of its intent to order 90 new aircraft, from both Boeing and Airbus, worth $20 billion at list prices at the 2015 Paris Air Show. Wibowo retired from his position in 2017, replaced by Pahala Nugraha Mansury the same year before being replaced by I Gusti Ngurah Askhara Danadiputra, otherwise known as Ari Askhara in 2018. took over as Garuda's CEO in September 2018, setting a new strategy of capacity cuts and price increases. The airline reported a $19.7 million profit in Q1 2019, jup from a $64.3 million loss the prior year, including a 12% rise in revenue. During Ari Askhara's leadership, Garuda introduced live acoustic concerts on domestic flights, which led to criticism. as well as reopening the London route from Denpasar, with transit in Medan's
Kualanamu International Airport. It was also hit with three high-profile scandals. In April 2019, Chairul Tanjung and Dony Oskaria, Independent Commissioners of the airline, called out that Garuda's 2018 Annual Report was not under the Statement of Financial Accounting Standards, thus deciding not to sign the report. Both
Ministry of Finance and
Financial Services Authority found various violations inside the report, as both Independent Commissioners told the public, which led to both regulators imposing a penalty on the airline and the auditors involved. On 13 July 2019, travel reviewer and YouTuber Rius Vernandes shared a picture of a hand-written menu during his flight from Sydney to Jakarta, which led to Garuda's management reporting him to the police followed by the airline issuing a regulation prohibiting selfies on the plane and a lawsuit prompted by the Garuda's workers' association also known as SEKARGA. Both Garuda's and SEKARGA's actions were panned and criticized by worldwide netizens. Through mediation, Rius and Garuda settled, and SEKARGA pulled the lawsuit on 19 July 2019.
Controversy during the leadership of Ari Askhara On 5 December 2019, Ari Ashkara was fired from his position for smuggling a classic
Harley-Davidson motorcycle and
Brompton folded bicycle. The motorcycle and bicycle were found by the
Soekarno–Hatta International Airport's
Customs and Excise team inside a recently delivered
Airbus A330-900 aircraft. It was revealed that Ari Askhara and other directors had been implementing various policies that harmed Garuda flight attendants, such as mutation without explanation, additional flight hours, and discrimination between employees. These policies were subsequently revoked. A year later in December 2020, it was revealed through
Twitter that many Garuda flight attendants had been victims of sexual harassment and coercion to prostitution during Ari's leadership, with many attendants confirming that VP Cabin Attendant Roni Eka Mirsa was the pimp for the prostitution circle. Police responded by investigating the whistleblower in the case for defamation after a report was filed by an air hostess who was allegedly the mistress of various executives at state-owned enterprises. She later dropped the complaint. State-owned Enterprises Minister
Erick Thohir said that he would consider dismissing executives of state-owned enterprises if their female employees have faced sexual harassment.
COVID-19 pandemic (2020–2023) On 14 May 2020, as a result of the
COVID-19 pandemic and its
impact on the aviation industry, Garuda Indonesia furloughed 800 of its staff for at least three months. In June, it laid off 180 contracted pilots. The airline implemented face masks for crew members following health regulations to prevent the spread of the disease. On 16 June 2020, after some passengers complained that they could not see the flight attendants' faces, Garuda president director Irfan Setiaputra said the airline was planning to replace face masks with face shields for its cabin crew. Three days later, in response to public criticism of the plan, he said Garuda's flight attendants would not stop using face masks.
Financial trouble Due to the prolonged pandemic, Garuda Indonesia experienced problems in operations, management, and funding. Its debt has arisen and is unpaid, and the corporation is currently on the verge of bankruptcy and future closure by the government. In the effort to save the airline, Garuda has cut around 30 percent of its workforce, reducing its staff to 5,400 from 7,861. Garuda claims that its board of directors and its commissioners have taken a pay cut as well. At the end of 2021, Garuda reported a debt of $9.8 billion to more than 800 creditors, complicating efforts for out-of-court settlement attempts during the COVID-19 pandemic, where Garuda's income dropped by 70 percent. As the future replacement of Garuda Indonesia in case the corporation is deemed beyond saving, the government prepared
Pelita Air Service, a cargo airline currently owned by
Pertamina, to be the successor of Garuda Indonesia as the new flag carrier of Indonesia. In May 2022, Garuda appeared in court for its attempts to reschedule its debts. Garuda filed for a 30-day delay in the proceedings, which is granted by the court. This was the second extension given by the court, as the original court date was in March 2022. In April 2022, the Sixth Committee of Indonesia's People Representative Council and Erick Thohir, Indonesia's Minister of State Owned Enterprises, decided to execute a scheme to save the ailing airline. In June 2022, during Garuda's attempt to delay payment of its debts, Garuda announced that its debt was $8.3 billion, where its biggest debtors were Airbus SE and Pertamina. If the delay to pay its debts was accepted by its creditors, Garuda promised that it would be profitable in three years. Garuda will also seek funding of $1.3 billion through global bonds and issuance of new stocks. On 17 June 2022, Garuda's creditors voted to accept Garuda's debt restructuring, saving the company from bankruptcy. Boeing did not join the debt restructuring process because Garuda stated that its amount of debt to Boeing was not verified yet, and Garuda stated that if Boeing did not confirm its debt to Boeing in 30 days after the debt restructuring, Garuda's debt to Boeing could be removed. On 20 June 2022, Garuda's debt restructuring was put on hold because two of the lessors did not agree with the debt restructuring, and a new court date was set on 27 June. In September 2022, Garuda Indonesia filed for US Chapter 15 bankruptcy protection.
Corruption case On 22 June 2022, the Attorney General's Office of Indonesia said it was finishing its investigation of corruption in the purchase of CRJ-1000 and ATR 72-600 aircraft. Setijo Awibowo, the Vice President of Strategic Management, Agus Wahjudo, the Executive Project Manager of Aircraft Delivery and ex-vice President of Treasury Management Albert Burhan are suspects in the case. Emirsyah Satar, the CEO during the alleged corruption, has been arrested for another corruption case. The loss for Indonesia is reported to be US$609 million. ==Corporate affairs and identity==