“PERTH MARKET OUTLOOK” GARUDA INDONESIA July 2018

Garuda’s Planning for Perth Table of Content Market Condition Perth Market Outlook Garuda’s Planning for Perth How is market condition nowadays in every region How is Perth market outlook through past few years What is Garuda’s planning for Perth in few years ahead Medium Term Network & Capacity Plan Australia Outlook Conclusion How is Australia market outlook through past few years The conclusion about Perth What is Garuda’s medium term network & capacity plan

INTERNATIONAL MARKET CONDITION (CURRENT) Australia Outlook Perth Market Outlook Network & Cap Plan Future Planning for Perth Conclusion INTERNATIONAL MARKET CONDITION (CURRENT) How is the current market condition from Indonesia? In mio 1.6% In mio 7.1% In mio 6.3% In mio 8.4% In mio 6.0% In mio 13.6% In thousand 6.4% TRAFFIC (MARKET SIZE) Others Others Others Others Others Others Market Condition MARKET SHARE FY 2017 Others 1 CGK-SIN 1 CGK-HKG 1 CGK-ICN 1 CGK-JED 1 DPS-PER 1 DPS-AMS CGK-LAX 1 2 CGK-KUL CGK-NRT 2 DPS-HKG 2 2 CGK-MED 2 DPS-MEL 2 CGK-AMS 2 DPS-LAX 3 DPS-SIN 3 DPS-PEK 3 DPS-ICN 3 CGK-RUH 3 DPS-SYD 3 DPS-LHR 3 CGK-JFK TOP 5 ROUTE FY 2017 4 KNO-PEN 4 CGK-TPE 4 CGK-HND 4 CGK-DXB 4 DPS-BNE 4 DPS-CDG 4 CGK-SFO 5 DPS-KUL 5 DPS-PVG DPS-NRT 5 SUB-JED DPS-DIL 5 5 DPS-FRA 5 5 DPS-SFO ASIA CTH JPK MEA SWP EUR USA Region Source : DDS IATA 2018 (only schedule flights) Note : Already flown by GA

Australia AUSTRALIA’S MARKET CONDITION (CURRENT) BNE PER SYD MEL Australia Outlook Perth Market Outlook Network & Cap Plan Future Planning for Perth Conclusion AUSTRALIA’S MARKET CONDITION (CURRENT) How is the current market condition of Australia from Indonesia? Australia Capital: Canberra GDP : $1.482 trillion (2018 estimate) GDP per Capita : $58.941 (2018 estimate) 3 mio 2 mio Market Size Indonesia-Australia 2017 2016 2015 2014 2013 2.3 Mio 2.5 Mio BNE 2.6 Mio PER 3.0 Mio SYD 2.9 Mio MEL

TOP 10 DESTINATION INDONESIA-AUSTRALIA & NEW ZEALAND Market Condition Australia Outlook Perth Market Outlook Network & Cap Plan Future Planning for Perth Conclusion AUSTRALIA’S MARKET CONDITION (CURRENT) What is the top 10 routes and destination of Indonesia –Australia vv? TOP 10 DESTINATION INDONESIA-AUSTRALIA & NEW ZEALAND FY 2017 PERTH MELBOURNE SYDNEY 1 2 BRISBANE ADELAIDE TOP 10 ROUTE FY 2017 3 4 5 738.336 5% 1 DPS-PER 463.901 15% 2 DPS-MEL 449.084 7% 3 DPS-SYD 875.639 26% 677.874 21% 664.665 20% 256.203 7.8% 166.071 5.0% 17% 4 DPS-BNE 264.003 DPS-ADL 130.619 19% DARWIN AUCKLAND CAIRNS TOWNSVILLE 5 GOLD COAST 6 7 8 9 10 6 CGK-SYD 141.615 4% 7 DPS-DRW 113.134 10% 8 CGK-MEL 101.500 7% 112.511 3.4% 74.155 2.2% 1.3% 9 CGK-PER 76.276 42.325 38.341 1.2% 33.627 1.0% 9% 10 DPS-CNS 52.309 25% Source : DDS IATA 2018 (only schedule flights) Garuda has served the first top 3 destination and routes DPS-PER and DPS-MEL is the top favourte route of Indonesia-Australia Note that there are a lot charter business which are not covered by DDS Already operated by Garuda New potential route

AUSTRALIA’S MARKET CONDITION (CURRENT) Australia Outlook Perth Market Outlook Network & Cap Plan Future Planning for Perth Conclusion AUSTRALIA’S MARKET CONDITION (CURRENT) From Australia-Indonesia market perspective Indonesian Market by State In Australia Indonesia Market Profile arrives to Australia - Australian residents make up the majority of the traffic between Australia and Indonesia - Indonesian Market declined 4.5% YOY compare last year - WA Market is the biggest market to Indonesia or 26% compared to other state - Indonesian Market declined 2.4% YOY compare last year ( YE Feb 17 ) Customer with holiday and family visits will still be our main segment Source: Tourism Australia – Indonesia Market profile 2017. Perth Market : Source: Department of Immigration and Border Protection (DIBP)

01 02 03 6 3 GARUDA’S CURRENT ROUTE IN SWP Australia Outlook Market Condition Australia Outlook Perth Market Outlook Network & Cap Plan Future Planning for Perth Conclusion GARUDA’S CURRENT ROUTE IN SWP Garuda now served to 3 destination and 6 routes to Australia Jakarta Denpasar Perth Melbourne Sydney 6 Route 3 Destination Perth 01 Denpasar : 7x/week with A333 Jakarta : 5x/week with B738 Melbourne 02 Denpasar : 8x/week with A333 Jakarta : 5x/week with A333 Sydney 03 Denpasar : 7x/week with A333 Jakarta : 5x/week with B738 Note: Freq/week in June 2018

22 37 GARUDA’S INT NETWORK & CAPACITY PLAN Australia Outlook Market Condition Australia Outlook Perth Market Outlook Network & Cap Plan Future Planning for Perth Conclusion GARUDA’S INT NETWORK & CAPACITY PLAN Garuda will utilize current network until 2018 Melbourne Sydney Perth Seoul Tokyo (HND) Tokyo (NRT) Osaka Beijing Surabaya Guangzhou Amsterdam Bangkok Hongkong Jeddah Shanghai London (LHR) Jakarta Singapore Kuala Lumpur Medan Balikpapan Makassar Denpasar Mumbai Chengu Current Route Xian Zhengzhou Nagoya Manila 22 Destination 37 Route Fleet Plan Garuda ATR CRJ B737 Family Total Narrow Body B744 B777 2016 2017 2018 A330 Family Total Wide Body 15 18 75 74 108 110 2 - 10 24 36 34 Total Fleet 144 Develop potential market with higher capacity, in China, SWP and JPK region Airbus A330-300/A330-200 24 A/C

PERTH’S ROUTE PLANNING Market Condition Australia Outlook Perth Market Outlook Network & Cap Plan Future Planning for Perth Conclusion PERTH’S ROUTE PLANNING Perth traffic and route development MEL SYD TYO BOM India China Japan Australia United Kingdom LON PER PVG DPS CGK AMS Source : Australian Transportation Ministry Singapore, Denpasar, and Kuala Lumpur are the top traffic in/out Perth in 2017 Garuda plans to expand australian route according to some analysis. The traffic of Australia-Indonesia is positive and always growing Indonesia's geographical position has the potential to become a connecting point between Australia - Japan, Korea, China, India, Singapore, Europe Potential to achieve greater market share and network traffic trough more schedule offerings.

PERTH’S ROUTE PLANNING Market Condition Australia Outlook Perth Market Outlook Network & Cap Plan Future Planning for Perth Conclusion PERTH’S ROUTE PLANNING Perth traffic and route development CGK-PER-CGK Sydney Perth Jakarta Denpasar Aircraft B737-800 Frequency 5x/week Market YTD Apr 18* Size: 17,237 Growth 2% Share: 100% Current Status Route Development 2019 “Garuda plans to increase frequency of CGK-PER-CGK from 5x/week into daily (7x/week)” Note: Market direct competition DPS-PER-DPS Aircraft A330-300 Frequency 7x/week Market YTD Apr 18* Size: 193,331 Growth -20% Share: 19% Current Status Route Development 2019 Garuda plans to increase frequency of DPS-PER-DPS from 7x/week into 10x/week Maintaining of AC 333 Sydney Perth Jakarta Denpasar Note: Market direct competition

Strategy for the challenging market Market Condition Australia Outlook Perth Market Outlook Network & Cap Plan Future Planning for Perth Conclusion PERTH IN FOCUS Strategy for the challenging market Low cost carriers dominate the Perth to Indonesia Market due to the short travel distance. 90% of traveler to Indonesia are Australian resident Demand for travel between Perth and Bali is increasing every year, especially amongst Australian residents. Garuda Indonesia continues to maintain 20% of PER-DPS market share and 70% PER-CGK. Recent increase in route frequency Perth to Jakarta will continue to grow the GA market share in Perth. Maintaining the quality of existing products and service offering Maintain and improve strategic relationship with key sales distribution channels Broaden the products and service offering, (i.e. network selling, special packages) Source: Tourism Australia – Indonesia Market profile 2017. Perth Market : DIBP PER-Indonesia two way passenger data

01 02 04 03 CONCLUSION PERTH Australia Outlook Perth Market Outlook Market Condition Australia Outlook Perth Market Outlook Network & Cap Plan Future Planning for Perth Conclusion CONCLUSION Australia Market 01 02 Perth Market Although there was a decline in 2017, CAGR traffic Indonesia-Australia in 2013-2017 increased for about 6% Perth is the main destination and route from Indonesia and has the biggest market. SWP Market Perth Market PERTH Potential Partnership/codeshare 04 Route Planning Potential Partnership Route Planning 03 There is some potential partnership/codeshare for market Australia to beyond Indomesia market like Europe and Asia Garuda plans to add frecuency for DPS-PER and CGK-PER route in 2019

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