Garuda served Darwin for over thirty years before ceasing the route in 2009, unable to compete with Jetstar's more frequent, lower costs services. Garuda was also not in the best state of health, although it has now greatly improved.
The Kupang route had been previously served by Merpati and Air North, while Transnusa has indicated an interest in serving the route in 2013.
If Garuda return to the Denpasar-Darwin route they can be expected to face tough competition from Jetstar on price. Yesterday Jetstar advertised return flights for $129.76. That will be very hard to beat, although Garuda's new improved full service offering will win many over.
ALISON BEVEGE | December 19th, 2012
INDONESIA'S national airline is to investigate a return to the Northern Territory.
Garuda will send a delegation to Darwin early next year after Chief Minister Terry Mills discussed improving transport links with company president Emir Satar in Jakarta yesterday.
Mr Mills said it was no secret the NT Government wanted the airline back.
"The challenge now is persuading airline executives there is a sound business case to do so," he said.
Garuda used to fly three times a week from Darwin to Denpasar.
But competition from budget airline Jetstar drove it out of town in 2009, leaving Darwin without a full-service international airline.
Garuda now services southern capitals, flying 35 weekly services from Bali and Jakarta to Sydney, Melbourne and Perth.
Labor tourism spokesman Ken Vowles said Garuda should be encouraged to look at a range of services from Darwin, including Bali, Kupang and Lombok.
"The Territory is one of the fastest-growing economies in Australia, providing an opportunity for Garuda Indonesia Airlines to have more flights into Darwin and leverage of tourism opportunities," he said.
While in Jakarta, Mr Mills also discussed resuming flights into Kupang, using it as a hub to connect into the domestic Indonesian network.
The regular Darwin to Kupang flight route disappeared in 2008 when AirNorth scrapped its twice-weekly service.
Air North chief executive Michael Bridge said at the time there was no demand.
"There were just not enough people wanting to travel to make it work," he said.
Mr Bridge said he welcomed any opportunity to run the route again.
"The general economy in Indonesia is going from strength to strength so it may be time to look at it again," he said.