BAUTISTA, LEEMAR RUSTIE S.
CALIMLIM, ALEXIELLE A.
MADRONIO, KAREN MAE C.
ROMAN, LANCE
SARMIENTO, MIKAELA P.
BSBAMM4B
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I. Time Context January 17, 1988
II. Viewpoint Mr. Mohammad Soeparno, President Director of Garuda Indonesia Airways
III. Major Policy Statement Garuda Indonesia Airways, the largest airline in the Southern Hemisphere, is a provider of air transportation and a guarantor of quality service that supports the success of the development of transportation and tourism, aiming to be one of the world’s top airlines in the year 2000.
IV. Current Operational Plans Management 1. The management made an assessment of the company’s strengths and weaknesses relative to the environmental opportunities and threats. In order to respond to the increasing uncertainty in the environment in which Garuda operates, the management found it necessary to adopt a “strategic thinking” in making plans to reach the following goals: 1. To be one of the world’s top 10; 2.to give excellent service; to be more professional in commercial air transportation; and 4. To increase finance condition by reaching 5% profit before tax. 2. Panca Program – five point programs in order to reach their objectives. Panca Program contained the following elements: 1. To increase fleet utilization; 2. To improve employees’ welfare; 3. To improve service; 4. To implement the national civil aviation policy as decreed by the Minister of Communication; and 5. To boost tourism. 3. In 1985, Garuda introduced service to the U.S. under an interchange agreement with Continental Airlines of the U.S but Garuda’s interchange agreement with Continental also came to an end in 1986. This gave rise to the involvement of two or more airlines in the same flight serving a particular route. The airlines involved share of the revenues, the costs, or the profit generated by the joint service. 4.