On January 6, 1988, Mr. Mohammad Soerparno (50) was appointed by the government of Indonesia to succeed Mr. Lumenta as President Director of Garuda Indonesia Airways. In spite of the rapid growth in both passengers the traffic and fleet during the oil boom of the 1970's, thus making it the "largest airline in the Southern Hemisphere", Garuda, as it was known then, had been plagued by a bad reputation as well as heavy losses year after year. Having been a member of Mr. Lumenta's management team of Garuda since November 17, 1984, Mr. Soeparno had the opportunity to involve himself with the management in its efforts to develop and implement new strategies to turn around the airline, which posted a net loss of U.S.$7 million in 1984 (exhibit 9), into profitability.
II. View Point
As the newly appointed President of Garuda, Mr. Soeparno is caught in the middle of a dilemma of whether to continue Mr. Lumenta's successful policies or to formulate a new set of policies which would enhance the company's ability to deal with the challenges it may face during his term and beyond.
III. Major Policy Statement
Garuda Indonesia is the oldest flight company in Indonesia and owned by the government Garuda Indonesia is a state-owned company that provides air transportation either for domestic or international customers. It is the largest airline in the Southern Hemisphere and the second largest in Asia in terms of plane numbers.
Garuda Indonesia is determined to improve its quality in all aspects of the company’s activities, and to prepare for privatization which will be realized in the near future. Through these efforts it is our sincere hope that Garuda Indonesia will remain a source of great national pride for Indonesia, and that we will continue to be one of Asia’s most respected airlines. Garuda has the obligation to make a reasonable profit in order to guarantee the company’s welfare and to take care of the interests of the nation, of the