Garuda Indonesia and China Airlines signed a Memorandum of Understanding (MoU) which will aid the Indonesian carrier's ongoing network development, improve service quality and offer better value to customers. The deal, signed by President Director & CEO Garuda Indonesia, Emirsyah Satar and China Airlines' President, Huang-Hsiang Sun, in Bali on Thursday, February 12, 2009, covers code share agreements, cargo co-operations, and promotional activities to enhance traffic between the two countries, network expansion and other forms of co-operations.

In the initial stage of the co-operation, both airlines agreed to begin code-sharing on the Jakarta-Taipei and Denpasar-Taipei services, flying once daily and using A330 and B744, on each respective route. China Airlines acts as the operating party (the airline flying the route), while Garuda Indonesia's role as the marketing party allows it to sell 45 seats per day on the Denpasar-Taipei (vv) route, and 30 seats on the Jakarta-Taipei (vv) service. Code sharing on the Jakarta-Taipei (vv.) route was initiated in as far back as 1991. Meanwhile, the Denpasar-Taipei (vv) route has operated on a code sharing basis since 1995, and is valid for every extra flight of China Airlines.

The MoU also entitles Garuda Indonesia to a Special Prorate Agreement/SPA on routes served by Garuda to Taipei and beyond, such as other destinations in Asia, including Japan, and the United States. On the other hand, it has been agreed that China Airlines will apply an SPA on its Jakarta and regional services, as well as domestic routes in Indonesia. In the SPA agreement, Garuda Indonesia will be responsible for operating the Jakarta sector, flying to regional and domestic destinations. For the Taipei sector, China Airlines will serve destinations in Asia, including Japan, and the United States.

According to Garuda Indonesia's President Director & CEO, Emirsyah Satar, this new partnership offers customers a wider choice of service, as well as greater travel facilities and comfort. For the airline, the code sharing deal will further expand its global flight network. China Airlines' President, Huang-Hsiang Sun, also shares his hopes for an increase in traffic between the two countries, and hopefully other forms of co-operations in the near future.

In the future, this code sharing deal will evolve to become other code share agreements on the following routes: Surabaya-Hong Kong-Taipei, Surabaya-Singapore-Taipei, and Denpasar-Hong Kong-Taipei. In terms of cargo transport, SPA on cargo will be introduced on the following routes: Jakarta to the United States, and Jakarta to Europe, using China Airlines.

Garuda Indonesia's ongoing network development has also benefited from joint services with other airlines in the region, namely Malaysian Airlines, Singapore Airlines, Korean Air, Philippine Airlines, Qatar and many others.

Previously, since early February, Garuda Indonesia opened new routes in succession, namely from Surabaya to Hong Kong and Denpasar to Hong Kong, as well as a direct flight Shanghai-Denpasar-Jakarta. The move followed the opening of domestic services in January to Tanjung Karang, Kendari and Malang.

As many as 18 routes will be in operation in 2009 as part as Garuda Indonesia's network expansion program in the domestic and international sectors. The routes are as follows:

1. Jakarta - Tanjungkarang

2. Jakarta - Malang

3. Jakarta - Makassar - Kendari

4. Jakarta - Makassar - Gorontalo

5. Jakarta - Makassar - Sorong

6. Jakarta - Makassar - Ambon

7. Jakarta - Makassar - Palu

8. Jakarta - Jambi

9. Jakarta - Manado - Ternate

10. Jakarta - Balikpapan - Tarakan

11. Jakarta - Pangkal Pinang

12. Denpasar - Lombok

13. Denpasar - Kupang

14. Denpasar - Adelaide

15. Denpasar - Hong Kong

16. Surabaya - Hong Kong

17. Jakarta - Shanghai - Denpasar - Jakarta

18. Yogyakarta - Singapore.

The gradual arrival of 14 new B 737 NGs (New Generation) starting in mid 2009 will help to realize the airline's network expansion plans.

Jakarta, February 12, 2009

PT. GARUDA INDONESIA