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In its latest stamp of approval, flagship carrier PT Garuda Indonesia, last month named the world’s most improved airline, resumed flights to Europe after almost six years, including a two-year ban over safety fears.

A Garuda Airbus 330-200 took off on Tuesday from Jakarta bound for Amsterdam via Dubai.

One of Asia’s most successful airlines through the global economic downturn, Garuda has been expanding its routes and buying planes ahead of a planned initial public offering this year.

The Amsterdam connection is the first Garuda flight to Europe since late 2004 and comes less than a year after European Union regulators cleared it to fly in EU airspace again. Brussels had banned all Indonesian planes in 2007 after a series of crashes and incidents exposed poor safety standards across the Indonesian aviation industry.

Spokesman Pujobroto said Garuda also planned to open routes to Frankfurt, London, Paris and Rome.

Garuda was named the world’s most improved airline last month by London-based research company Skytrax.

The resumption of flights to Europe may spur revenue and help attract investors to a $300 million IPO Garuda is targeting by the end of September. President director Emirsyah Satar forecast profit would increase 20 percent this year.

“Garuda is well placed for expansion,” said David Chang, a director of UOB Kay Hian Securities Indonesia. “The EU move is a stamp of approval because in the past, one worry was that Garuda may be cutting corners on repairs and maintenance when they had financial difficulties.”

Garuda, the country’s biggest carrier, posted net income of Rp 1 trillion ($109 million) last year, its third-consecutive year of profit.

Garuda has a four-star ranking, on a par with British Airways and Emirates.

“We are coming back with a premium product, new aircraft and great services,” Emirsyah said. “The market is big enough because there are people wanting to visit Indonesia and Indonesians traveling to Europe.”
 

Bloomberg, AFP