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Garuda Indonesia to end branch operations in Taiwan

2014/12/03 19:22:37

Taipei, Dec. 3 (CNA) Garuda Indonesia, the flag carrier of the Southeast Asian country, said Wednesday it will end the operations of its branch in Taiwan by the end of 2014 because of unsatisfactory results since resuming flights to Taiwan in 2012.

About 30 employees will be laid off, the company said, but it will continue flight services between Taipei and Jakarta through code-sharing agreements with China Airlines (CAL).

Under the partnership, Garuda and CAL passengers can share the same flight, it said.

The Indonesian airline ended its own flight service between Taipei and Jakarta on Aug. 11.

Garuda's withdrawal from the Taiwan market is seen as the result of low ridership on the route since 2012, when it resumed flights to Taiwan after a break of almost eight years.

The airline, which serves mainly business travelers and overseas Indonesian workers, previously withdrew from the Taiwan market in September 2004 after three decades of service.

At the time, Taiwan and other countries in the region were struggling with the lingering effects on their economies, and in particular the travel sector, caused by an outbreak of severe acute respiratory syndrome (SARS).

CAL and EVA Airways, Taiwan's two leading airlines, currently fly daily round-trips between Taipei and Jakarta.

(By Wang Shu-fen and Lee Hsin-Yin)