Garuda Cargo Strategy and Performance Improvement

The Challenge

Garuda Indonesia was interested in expanding its cargo business in international and domestic markets, improving its cargo operation and developing a  business plan for belly and freighter operations.

Our Role

The InterVISTAS team developed the cargo strategy for Cargo Garuda Indonesia, including the following scope:

Diagnostic Analysis: Review and improve core network, pricing, sales, distribution, operations, supply chain, IT and human resource processes in comparison with industry best practices. Executed workshops with Garuda’s current cargo customers. This included the implementation of a variety of quick hits and early wins.

Market Analysis: Analysis of demand and supply changes, competitor activities, reasons behind underperformance of Garuda’s share in domestic and international markets, SWOT and cargo fares.

Market Forecasting and Route Structure: Designed and executed forecast of new provisional cargo network, using primary and secondary research. Identified opportunities to increase revenues and LF in belly operation. Evaluated the need for dedicated freighters, as well as designed a medium and long term freighter route plan.

Business Plan: Developed revenue, cost and profit forecast for Garuda’s cargo strategy.

Results

Early in the project, cargo revenue management recommendations were implemented and delivered good results. Comprehensive analysis, market forecasting, route design, freighter selection models and business plan were developed and approved by the executive team.