Jakarta, August 23rd, 2017, Vietnam’s flag carrier Vietnam Airlines and Indonesia’s flag carrier Garuda Indonesia have signed a Memorandum of Understanding (MOU) to strengthen cooperation between the two airlines in the areas of codeshare partnership, services, MRO (maintenance, repair, and overhaul) and cargo. The signing ceremony was held on the sideline of General Secretary of Vietnam Communist Party Nguyen Phu Trong’s visit to Indonesia.

With the MOU signed today by Mr. Duong Tri Thanh, President and CEO of Vietnam Airlines, and Mr. Pahala Mansury, President and CEO of Garuda Indonesia, the two airlines seek to expand their current codeshare partnership in the following routes: Hanoi - Ho Chi Minh city, Hanoi/Ho Chi Minh city - Singapore, Singapore - Jakarta/Bali and Jakarta - Bali. Both airlines agree on seeking opportunities to enhance other areas of cooperation such as services, MRO & cargo on the basis of mutual benefits. The expansion of partnership between the two airlines is also supposed to strengthen their cooperation within and contribute to the development of Skyteam Alliance.

Commenting on the signing of this agreement, Mr. Duong Tri Thanh, President and CEO of Vietnam Airlines said: “Since 2006, Vietnam Airlines and Garuda Indonesia have effectively cooperated with tangible result. This MOU today takes our cooperation further in the direction of a solid and mutually beneficial partnership, helping both airlines achieve the vast potential of the market. With our long-time partner Garuda Indonesia, we hope to see more passengers travelling between Vietnam and Indonesia, and our customers can benefit from more flight options as well as excellent international service quality from Asia’s two leading airlines.”

Mr. Pahala Mansury, President and CEO of Garuda Indonesia said: “We are pleased to announce this partnership with Vietnam Airlines which extends our network even further within the Southeast Asia. Vietnam is an important market for Indonesia and through this partnership we can offer more travel options for the increasing number of passengers travelling between the two countries. At the same time, the agreement is expected to boost trade and tourism activities by making Indonesia much more accessible for Vietnam visitors."

According to the Centre for Asia-Pacific Aviation, Southeast Asia’s aviation market is expanding faster than the global average across nearly every country in the region, thanks to the region’s economic and middle class growth. Six of Southeast Asia’s 10 countries enjoyed double-digit growth in passenger traffic, led by Vietnam. This trend is forecast to continue in 2017.

The need for air transport services in Indonesia is still expected to strengthen in line with improvement in economic growth. Total passengers are projected to multiply 1.00-2.5 times of Indonesia’s GDP. Based on the data from the Statistics Indonesia (BPS), total international passenger traffic in Indonesia went up 8.16% from 13.66 million in 2015 to 14.77 million in 2016. The growing size of international passengers from Indonesia were likely to be driven by the stronger economic activity and the rising number of the middle-class. It was shown by the number of domestic passengers which saw 16.97% increase from 68.78 million in 2015 to 80.45 million in 2016.

The vast growth in passengers makes Indonesia the third largest country in aircraft purchase after China and India. The strong development and growth of Indonesia’s aviation industry open up new opportunities for airline business. Additionally, solid economic growth, which is supported by the burgeoning middle-class segment, will further promote air travel.

Editor's Note

About Vietnam Airlines:

Vietnam Airlines is the national flag carrier of Vietnam and the major carrier in the Mekong sub-region, operating 90 routes to 20 domestic and 29 international destinations with an average of 400 flights per day, connecting the world’s major cities to mesmerizing travel destinations in Vietnam, Laos, Cambodia and Myanmar.

Vietnam Airlines has been certified as a 4-Star Airline by the prestigious Skytrax, the world’s leading airline and airport rating organisation. This year Vietnam Airlines ranked 14th among the 20 best premium class airlines in the world also by Skytrax. This achievement is the result of the organisation’s tireless devotion and commitment to improve the quality products and services.

During 20 years of development at an average annual growth rate consistently in double-digit number, Vietnam Airlines has marked an obvious advance to become a major airline in the Asian aviation market. In June 2010, Vietnam Airlines joined SkyTeam Alliance, affirming the carrier’s new position on the global aviation map as the strategic partner of the alliance in Southeast Asia region. In 2015, Vietnam Airlines became the second airline in the world to operate both next-generation aircraft Boeing Dreamliner 787-9 & Airbus A350-9XWB at the same time.

Positioning itself as a young, modern carrier whose brand is characterized by Vietnamese traditional culture and internationally recognized, Vietnam Airlines is striving to become one of the most favourable carriers in the Asia-Pacific region.

About Garuda Indonesia:

Presenting a new level of service excellence in air travel, Garuda Indonesia, the national airline of Indonesia, seamlessly connects more than 85 destinations worldwide to not only one of the largest economies in Southeast Asia, but also an array of exotic locations in the beautiful archipelago of Indonesia all at once. With more than 600 daily flights, and a fleet of 202 aircrafts by end of 2017, with an average aircraft age which is less than five years old, Garuda Indonesia proudly serves its passengers with the award-winning “Garuda Indonesia Experience” service, which highlights Indonesia’s warm hospitality and rich diverse culture.

The airline continuously strives, through its ongoing transformation program, to provide better and more convenient services. The progress of Garuda Indonesia’s transformation program can be seen from achieving a Skytrax 5 star airlines since in 2014, Skytrax airline ranking as the 10th best airline in the world in the 2017, as well as winning the prestigious “The World’s Best Cabin Crew” award in 2014, 2015, 2016, and 2017. Garuda Indonesia is a member of SkyTeam, the global airline alliance with 20 members, providing access to an extensive global network with over 16,609 daily flights to 1,074 destinations in 177 countries.

For further information, please log on to www.garuda-indonesia.com, follow @IndonesiaGaruda on Twitter, like our Facebook page at PT.GarudaIndonesia, or subscribe to youtube.com/GarudaIndonesia1949.