Garuda, Hainan Airlines sign code-sharing agreement

Wasti Atmodjo, Contributor The Jakarta Post, Sanur

National flag carrier Garuda Indonesia and China's fourth largest airline, Hainan Airlines, signed a code-sharing agreement Tuesday to strengthen their marketing positions in China and Indonesia.

Agus Priyanto, Garuda's executive vice president for sales and marketing, said Tuesday that the agreement would allow Hainan airlines to sell up to twenty seats on each Garuda's flight from Jakarta to Beijing, and vice-versa.

The agreement will come into effect in July.

According to Den Jiang, general manager of Hainan Airlines, his company would also serve Garuda passengers with connecting flights to domestic destinations in China, including Harbin, Hangzou and Nanning.

Hainan Airlines presently flies to fifty-three cities throughout China.

Garuda currently flies 16 times a week to four cities in China: Beijing (three times a week), Shanghai (four times a week), Guangzhou (four times a week) and Hong Kong (five times a week).

"Through this deal, Garuda and Hainan Airlines hope to secure bigger markets in the Chinese region and in Indonesia," Priyanto said.

In 2006, Garuda Indonesia carried over 275,000 passengers between the two countries. For this year, it expects the figure to increase to more than 300,000 passengers.

Garuda's China routes generate US$130 million from passengers and $150 million from cargo, around 25 percent of the airline's total revenue.