Efforts to improve the quality of Garuda’s services is part of Garuda’s measure to revamp all its operational, business and management aspects, including service, following the new direction the company is taking. To carry out a transaction, for example, Garuda employs an online payment system that allows a customer to choose his own transaction pattern, namely via ATM, Internet banking, phone banking or mobile banking.
For Garuda, Emirsyah said, the service aspect is a key performance indicator that plays an important role in its operations. This stresses the commitment of Garuda as a customer-driven full-service airline that conforms to the paradigm that the aviation business is a service industry and that it is not a transportation business that only carries passengers from one city to another without any attention given to services.
Indeed, there are extra challenges for full service carriers as airlines adopting the LCC concept, like Southwest and JetBlue, can give above standard services. It is this concept that has been adopted by newcomer Virgin America, which serves domestic routes in the U.S. Although its rates are low, Virgin promises first-class service. Virgin’s fleet of Airbus A320, which is luxurious but fuel-efficient, are fitted with seats made by Recaro of Italy. It also provides high-speed Internet access and other services usually not found in low-cost carrier planes.
This is one of the things that prompted Singapore Airlines (SIA) to continue improving its services. In August 2001, the board of directors of this airline announced a business plan to install lie-flat seatbeds in its Raffles Class (business class). The company took this step in order to be on a par with British Airways, its main competitor, which launched a similar service a year earlier.
The realization of this plan turned out to be halting. Before this US$100 million project was realized, the Sept. 11, 2001 terrorists attacks occurred and totally changed all aspects of life, politics, society, culture and also business. Since this tragedy, people have become afraid of traveling by air, resulting in a drop in the number of air passengers worldwide.
To ensure that the project would continue, SIA undertook efficiency measures in other areas, such as introducing salary cuts among senior managers and executives. All this was resorted to in order to realize this prestigious project, the failure of translating it into reality would damage the reputation of SIA as an icon of airline customer service.
SIA was established in 1947, marked with a maiden flight from Kallang Airport, Singapore, to Malaysia. Adopting the right strategy in brand building, SIA, 60 years after its establishment, has turned into one of the world’s leading airlines with over 100 routes in 41 countries.
While other airlines are improving their services and applying a branding strategy, SIA, whose catchphrase is “A Great Way to Fly”, has already done these two things consistently and with commitment. Its airplanes are always punctual and provide complete in-flight services. SIA has even become a benchmark for other airlines.
When the United States started offering competitive low-cost flights, it led to a number of airlines cutting their service costs, which in turn concerned those who felt they would have to pay premium prices and fly business class just to obtain full services from an airline.
But as SIA Chairman Stephen Lee Ching Yen puts it, services are essential. (Eddy P. Kasdiono)
The Jakarta Post, September 20, 2007
