As efforts in service quality upgrades continue in order to maximize value for customers, Garuda Indonesia and Korean Air signed a Memorandum of Understanding (MoU) to “Enhance Co-operations in Marketing”, in Denpasar, Bali, on Thursday, July 24, 2008. During the occasion, the signatories were the President Director & CEO Garuda Indonesia, Emirsyah Satar and COO of Korean Airlines, Mr. Jong Hee Lee.

The new deal will allow Garuda Indonesia and Korean Air to increase seat allocations from 20 to 30 seats on the Jakarta/Denpasar – Seoul (vv) service, introduce a new destination city on the domestic service as part of the Special Prorate Agreement (SPA), implement an “interline e-ticket” strategy which will reduce travel hassles and enhance overall code-sharing management efficiency. It also explores possibilities of code-sharing on Garuda Indonesia’s and Korean Air’s domestic flights. In the area of cargo transportation, the two airlines expect to see increased volume and broader operations network.

As founder of the “Skyteam” airline alliance, Korean Air has also signaled its endorsement of Garuda Indonesia’s intention to become a member of the alliance. To date, Skyteam airline members include Aeroflot, AeroMexico, KLM/Air France, Alitalia China Southern, Continental Airlines, Czech Airlines, Delta Air Lines, Korean Air, Northwest Airlines, Air Europe, Copa Airlines and Kenya Airways.

According to Emirsyah Satar, Garuda Indonesia has set its sight on becoming a four star airline by 2009 and a five star airline by the following year. To this end, Garuda Indonesia has never ceased improving the performance of various aspects in the organization, including areas of operations and service. “And by entering the Skyteam alliance we are closer to achieving our targets”, he added.

Garuda Indonesia and Korean Air have already begun code-sharing on the Jakarta-Seoul (vv) service. Flying seven times a week and operating a A-330, Korean Air acts as the operating party (the airline flying the code-sharing route), while Garuda Indonesia, as the marketing party, sells seats based on agreed allocations.

Code-sharing on the Denpasar-Seoul (vv) service entitles both to act as ‘operating party’ and ‘marketing party’ towards its code-sharing partner. On this service, Garuda Indonesia flies 5 times a week, and Korean Air, 4 times a week. Both use an A-330.

Meanwhile, both airlines have also agreed to enter a Special Prorate Agreement (SPA) for service beyond Seoul, in which both airlines will be able to cover more destinations in Japan, the US and South Korea. In the partnership, Garuda Indonesia operates on the Jakarta-Seoul sector, while for destinations beyond Seoul – destinations in Japan (Tokyo, Nagoya, Fukuoka and Osaka), the US (Los Angeles, New York, Washington and Chicago) and South Korea (to Kwangju and Pusan) will be served by Korean Air.

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