GARUDA AIMS TO DOUBLE PROFIT TO RP516 BILLION

Jakarta, July 31 (ANTARA) - Garuda Indonesia intends to double its net profit this year to Rp516 billion from a year earlier, its president director said.

"We aim to increase it by up to two-fold," Emirsyah Satar said following a discussion on state-owned companies' performance here on Thursday.

The profit would be the result of the company's success in raising transport capacity, improving efficiency and expanding its market, he said.

Garuda would increase its fleet including operating planes under a lease contract as part of efforts to improve its transport capacity, he said.

The national flag carrier is in the process of ordering 50 Boeing 737-800s and 10 Boeing 777-30ERs and three Airbus planes under a lease contract. The 50 Boeing 737-800s will be delivered in 2009 and 10 Boeing 777-30ER in 2010.

Last year, Garuda posted a profit of Rp258 billion after it suffered losses for three consecutive years.

Garuda suffered a loss of Rp811.3 billion in 2004, Rp688.4 billion in 2005 and Rp197 billion in 2006.

He said efficiency was a must in view of a persistent steep rise in fuel cost.

"Efficiency also includes selling non-productive assets," he said.