NO. 1 2011 j EMERALD EMERGING MARKETS CASE STUDIES j PAGE 27

VOL. 1 NO. 1 2011 j EMERALD EMERGING MARKETS CASE STUDIES j PAGE 27

Exhibit 7. Garuda’s vision, mission, and corporate values Corporate vision

A strong distinguished airline through providing quality services to serve people around the world with Indonesian hospitality (Exhibit 8):

B A strong distinguished airline. It denotes that Garuda must become a gainful company, with a better operating profit margin than the average industry. Becoming a distinguished airline also signifies that Garuda must own a good reputation, highly regarded and respected. To gain the reputation, Garuda’s safety and quality record must be impressive.

B Quality services. Which implies that providing pleasant services is a natural character at Garuda. To actualize it Garuda must achieve five stars in the Skytrax rating.

B People (and goods) around the World. This is mirrored from the route coverage served by Garuda. Whether flying on its own as well as through alliances with other airlines, Garuda’s route coverage must reach out to the five continents.

Corporate mission The flag carrier of Indonesia that promotes Indonesia to the world, to support national

economic development by delivering professional air travel services. Corporate values

Corporate value called FLY-HI consisting of efficient and effective, loyalty, customer centricity, honesty and openness, and integrity:

B Efficient and effective. Garuda Indonesia personnel must work with diligence and accuracy, in the shortest possible time and show cost- and labor saving efforts, without sacrificing quality, to assure customers of quality services.

B Loyalty. Garuda Indonesia personnel must carry out his/her assigned duties with a sense of loyalty, dedication, responsibility and discipline, with a belief that they are united in the effort to ensure consistency high quality services for the customer.

Exhibit 8 Garuda’s quantum leap objectives

Distinguished airline

Operating revenue

Rp. 18.1 T

Rp. 57.9 T

Net profit

Rp. 669 M

Rp. 3,757 M 562

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Production – ASK m

Employee productivity – ASK/staff

Number of aircraft

Pax carried

Freight carried (tons)

Quality service Skytrax

Around the world Domestic departure

International departure

PAGE 28 j EMERALD EMERGING MARKETS CASE STUDIES j VOL. 1 NO. 1 2011

B Customer centricity. Garuda Indonesia personnel should be attentive and helpful, consistent with Garuda Indonesia’s commitment to place the customer as the focus of attention.

B Honesty and openness. Garuda Indonesia personnel must uphold honesty and sincerity in every aspect of their activities, and promote transparent and clear two-way communication in a confidential manner. With these characteristics, Garuda Indonesia ensures customers will feel secure, safe, and comfortable.

B Integrity. Every Garuda Indonesia personnel must maintain his/her dignity and refrain from any indecency that may tarnish the image of the profession and the company. Garuda Indonesia assures its customers of ethically and legally clean services and relations.

Exhibit 9 Financial performance

2006 2005 Summary of profit and loss

For the years 2005-2009 (in million rupiah) Operating revenues

11,378,190 11,538,166 Operating expenses

11,943,810 12,432,752 Income (loss) from operations

(565,620) (894,586) Other income (expenses)

265,866 (39,584.8) Tax benefits (expenses)

(36,072) 35,548 Net income (loss)

(197,077) (688,466) Summary of income statements

For the years 2008-2009 (in million rupiah) Account

2009 2008 Assets: Current assets

3,501,170 3,780,684 Non current assets

10,880,654 11,005,636.1 Total assets

14,381,825 14,786,319 Liabilities and equities (capital deficiency) Total liabilities

11,167,755 13,419,785 Equities (capital deficiency)

3,214,071 1,366,535 Total liabilities and equities (capital deficiency)

14,381,825 14,786,320 Source: Management Report 2009

Exhibit 10 Strategy map of Garuda

Sustainable

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Consistent high quality of products and

Product quality

Operational

Internal process

Employer of

High performance

Learning and