Direct flights to Indonesia to resume

Indonesian airline Garuda is to resume direct flights from Auckland to Jakarta after signing a deal with Auckland International Airport today.

The agreement was signed in the Indonesian capital by Auckland Airport chairman Joan Withers and Garuda International president and chief executive Emirsyah Satar.It confirms that Auckland will be Garuda's first destination in New Zealand as soon as market conditions improve and the airline's new aircraft arrive.

It come after Air New Zealand announced it would restart a seasonal Auckland to Bali service this year.New Zealand's Ambassador to Indonesia David Taylor said the deal was a "game changer" for the relationship between the two countries.

"(It will) offer real benefits to both countries through greater business, tourism and education travel."In February Garuda ordered 230 new aircraft from Boeing in a US$22.4 billion deal which includes 11 new wide-body jets.

Auckland Airport's general manager of aeronautical commercial Glen Wedlock said the airport had been working on developing a relationship with the Indonesian market for years and the MOU was a big step in the right direction.

"Indonesia is rapidly transforming into a global economic powerhouse," said Wedlock."With a population of around 240 million, Indonesia comprises around 45 per cent of the ASEAN [Association of Southeast Asian Nations] economy.

Wedlock said the number of Indonesian millionaires was expected to triple by 2015 according to a Credit Lyonnais Securities Asia wealth report, which meant tourism would clearly benefit from a direct travel link.

Garuda Indonesia had turned itself around in recent years and was on course for significant expansion of its routes in the next few years, Wedlock said.

"Thanks to this MOU, and to other initiatives such as the recent announcement by Air New Zealand of seasonal flights from Auckland to Bali, we expect tourism between New Zealand and Indonesia to continue to benefit as awareness and market interest grows.

"Our ultimate goal is to use commercially driven strategies to build stronger connections with the fastest growing markets in the world particularly in Asia and the Americas, in terms of both volume and wealth, and thereby create greater tourism value for New Zealand."

Garuda Indonesia's CEO Satar said Garuda wanted to resume flights to Auckland as part of a plan to increase its network, especially from New Zealand to cities in Asia and Europe via Jakarta and Bali.

Tourism New Zealand chief executive Kevin Bowler was also talking up the potential benefits of a link with Garuda Indonesia.

Source - stuff.co.nz