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Medan Plane Crash (04:22)

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In September 1997, Garuda Flight GA152 crashed, killing all on board; Garuda struggled with keeping families informed and public relations. The airline suffered six major crashes in 15 years and recorded a $45 million loss in the first six months of 1997.

Indonesian Airline (03:52)

Garuda Indonesia was founded in 1949. The Indonesian economy grew and Garuda, a state-owned company, was successful. Garuda's lack of competition resulted in complacency.

Garuda Culture (03:48)

In 1996, Garuda management compensated for poor service with more flights. Staff saw incidents of corruption and pilots protested. In July 1997, the local currency dropped; Garuda's monthly operating costs exceeded its cash.

Financial Crisis (04:01)

The 1997 Asian economic crisis impacted Indonesian businesses. Garuda management applied for loans and pursued a dramatic debt restructuring plan. Staff publicly decried company mismanagement but decided to give the new boss a chance to improve the situation.

Garuda's Initial Recovery (03:08)

Garuda streamlined operations and reopened some international routes. A 2002 explosion in Bali impacted passenger numbers and airline service. Munir Said Thalib was poisoned on a Garuda flight and the pilot was the main suspect; protestors demanded Garuda take responsibility.

Effective Changes (03:02)

Emirsyah Satar returned to Garuda as the CEO. He asked for capital for the company, met with Thalib's wife and other activists, and established priorities. By 2005, Garuda's debt was over $800 million.

Debt Restructuring (03:49)

Robert Schmitz investigated Garuda's debt and Satar decided to default on some payments. Minister of State-Owned Enterprises Sofyan Djalil met with Satar to discuss creditors.

Airline Incidents (03:28)

In March 2007, Garuda Flight GA200 overshot the runway and burst into flames; Satar managed the crisis. Other Indonesian flights were involved in accidents that year and the E.U. banned Indonesian flights to Europe. Garuda hired Eddy Porwanto as chief financial officer.

Challenging Garuda's Recovery (04:32)

Garuda tried to improve services while competing with other airlines and amidst rising oil prices. Djalil and Satar held a series of discussions with European creditors; privatization became a Garuda goal.

Upgrading Garuda's Image (02:40)

Satar handpicked cabin crews, purchased a new fleet, and took an active role; the company built relationships with passengers. In 2008, Garuda's former CEO was sentenced to jail for conspiracy to commit murder.

Garuda Earns a Five Star Rating (05:42)

The court found Indra Setiawan guilty of abusing authority. By 2008, Garuda turned a profit and in 2009, the E.U. lifted the safety ban and Satar announced an expansion plan. Garuda debuted on the Indonesian stock exchange in 2011 and sponsored an English football club in 2012.

Garuda Today (02:27)

Garuda is one of the most loved airlines with the highest satisfaction rating. The company has stronger balance sheets and will continue to grow; the Garuda staff remains motivated.

Credits: Garuda Airlines (00:34)

Credits: Garuda Airlines

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Garuda Airlines

Part of the Series : Inside the Storm: Lessons From The Boardroom
DVD (Chaptered) Price: $169.95
DVD + 3-Year Streaming Price: $254.93
3-Year Streaming Price: $169.95

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Description

Garuda Airlines is Indonesia’s pride and joy, but the nation's flag carrier was once in a tailspin towards total failure. Inside The Storm: Back from the Brink interviews ex-employees and shareholders who reveal how Garuda fought for its survival.

Length: 47 minutes

Item#: BVL160390

ISBN: 978-1-64481-005-7

Copyright date: ©2017

Closed Captioned

Performance Rights

Prices include public performance rights.

Not available to Home Video and Publisher customers.


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