The history started when Presiden Soekarno urge the businessman and the people of Aceh to gather funds to purchase an aircraft, in order to support his mobility as the leader of the government. The funds had gathered and resulted a Douglas DC-3 Dakota aircraft which have registered RI-001 by the name of "Seulawah" which means "the Gold Mountain"

Because of the tight flight schedule, RI-001 aircraft had to undergo its maintenance outside of Indonesia, and in December 7, 1948, RI-001 aircraft has landed in Calcutta for the maintenance. However, while the aircraft still undergo its maintenance, in December 19, 1948, the Dutch military has launched its second military aggression, even the aircraft have finished its maintenance, the RI-001 aircraft is unable to return to Indonesia.

In the same time, The Government of Burma had needed air transportation. In order to gather funds for the availability of flight attendants, finally it has decided that RI-001 aircraft have leased to The Government of Burma. In January 26, 1949. RI-001 aircraft flown from Calcutta to Rangoon by the name of "Indonesian Airways".

However, it has given the name "Garuda" by President Soekarno himself which he quoted from a Dutch poem composed by a popular poets that time, Noto Soeroto; "Ik ben Garuda, Vishnoe's vogel, die zijn vleugels uitslaat hoog bovine uw einladen", which means,"I am Garuda, Vishnoe's bird which spread its wing high above your archipelago".

In December 28, 1949, Douglas DC-3 Dakota PK-DPD aircraft, which have painted with "Garuda Indonesian Airways" logo, flew from Jakarta to Yogyakarta to come after President Soekarno. That was the first time the aircraft flies by the name of "Garuda Indonesian Airways".