On 26 June 2015, PT Garuda Indonesia Tbk (Garuda Indonesia) work together with cargo airline, PT Cardig Air in order to optimize each of their cargo businesses. The joint venture was marked by the signing of Memorandum of Understanding (MoU) between the two corporates at the Auditorium of Garuda City Center, Tangerang. Quarter-I 2015 financial report of Garuda Indonesia put on view the decline of Garuda's cargo business by 5.08 per cent. In Q1-2014, Garuda had succeeded to obtain some income as much as US$ 50.35 million, although conversely in the first three months in 2015 the income fell to US$ 47.79 million. Meanwhile, during 2014, the cargo income total that Garuda Indonesia obtain was US$ 218.46 million, increased by 11.48 per cent compared to the realization in 2013 for US$ 195.95 million. "The joint venture that we are realizing today is a strategic step to improve Garuda Indonesia cargo services especially to consumers. Through this joint venture, Garuda will expand its flight networks or domestic cargo deliveries," said the Managing Director of PT Garuda Indonesia Tbk., Arif Wibowo in the signing event of MoU. According to Arif, the air cargo business potency in Indonesia is still big especially to support the economic life in Indonesia as an archipelago country. Globally, The International Air Transportation Association predicted the global air cargo volume in this year is by 4.5 per cent or become 53.5 million tons or slightly increase from last year, 4.3 per cent. That condition was caused by the decline of goods delivery cost prediction by 5.8 per cent so then it increased the volume of air cargo carriers. Arif said for this early phase, Garuda Indonesia has rights to market (marketing party) its space freighter operated by Cardig Air (operating party) using Boeing 737-300 for Surabaya - Denpasar - Dili (Timor Leste) reroute destinations. Arif also said this joint venture is the corporate's attempt to improve Garuda Indonesia services especially in air cargo through goods distribution network development and as part of market expansion especially to Timor Leste region. Meanwhile, Cardig Air will have rights to market the Garuda Indonesia's cargo space for domestic and international routes. "Ahead, we will keep improving this joint venture with Cardig Air to expand the cargo delivery to other domestic and international routes that haven't been touched by the Garuda Indonesia Cargo," said Arif. Arif hopes that this joint venture will be able to give contribution as in cargo business income for US$10 million per annum of the Garuda's cargo business income target this year that reached US$ 300 million. In the same event the President and Chief Executive Officer (CEO) of Cardig Air Boyke P. Soebroto said the joint venture between Cardig and Garuda Indonesia is a strategic joint venture for Cardig. So far, Cardig has carried more or less 6,000 tons of cargoes per annum with income total as much as US$ 20 million per annum. Through this joint venture, it is expected to raise Cardig's income to become US$ 30 million per annum. "This joint venture gives many benefits and ease for us considering Garuda Indonesia has wide range flight networks, wide market and more cargo services that spread to 76 domestic cities that may support the expansion of Cardig Air in the future," said Boyke. Moreover, considering the Garuda Indonesia big business, Boyke expects that this joint venture will be able to press down the Cardig Air's operational costs, for example fuel purchase or ground operation services (ground handling).(en/mar)