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AirAsia Wants to Conduct Joint Operati with Garuda Indonesia

21 December 2018 15:47 WIB

TEMPO.CO, Jakarta - President Director of PT Garuda Indonesia Tbk. I Gusti Ngurah Askhara, said that PT AirAsia Indonesia Tbk. is planning to conduct a joint operation (KSO) with Garuda Indonesia Group. However, Askhara said that Garuda is still considering the offer.

"Yes they wanted to conduct the KSO with us, but I have not talked about the details," Askhara said at on Friday, December 21, 2018.

According to Askhara, Air Asia currently has a strong market share on international routes. "Air Asia is strong in its international [route], so maybe we will also support Citilink. So we will remain open [to the offer]," Askhara said.

However, Askhara acknowledged that the plan is till in initial discussion. "No previewing at all. We had just talked about it,” Askhara said.

Previously, Garuda Indonesia Group, through its subsidiary PT Citilink Indonesia, took over the management of PT Sriwijaya Air and NAM Air operations. The overall operation of the Sriwijaya Group, including financial issues, will be under the management of the KSO.

Askhara explained that this joint operation was intended to help Sriwijaya Air Group improve its operating performance and financial performance.

The KSO was intended to assist Sriwijaya Air in fulfilling their commitments and obligations to third parties, including those within the Garuda Indonesia Group.

According to Askhara, the cooperation can have a positive impact on Citilink Indonesia, so that it can synergize and expand its market, network, capacity and capability segments.

"As well as being able to accelerate the restructuring of the completion of the obligations of the Sriwijaya Group to one of Garuda Indonesia’s subsidiaries," Askhara said.

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