Garuda Indonesia Responds to Merger Issue

TEMPO.CO, Jakarta - National flag carrier Garuda Indonesia responded to the issue of a merger with another state-owned airline Pelita Air. “As for issues about the plan to merge Garuda with Pelita Air, we’d like to convey that the discussion on steps to explore this corporate action is still ongoing,” Garuda Indonesia Director Irfan Setiaputra said in his official statement, on Tuesday, August 22, 2023.

Garuda Indonesia Group, he underlined, would support and look positively at the merger efforts, which of course will be based on a prudent business outlook study. “The development plan is still at an early stage,” Irfan added.

He explained that his side is exploring various business synergy opportunities in order to optimize performance profitability while strengthening the business ecosystem of the aviation industry in Indonesia.

Furthermore, Irfan disclosed that this is also a positive signal for efforts to strengthen the company's performance fundamentals, especially after the restructuring.

“Therefore, we will certainly continue to communicate the projections of this merger process on an ongoing basis, in case there is a more specific follow-up assessment of the realization of the strategic plan,” Irfan said.

Earlier, SOE Minister Erick Thohir stated that the government mulled over the merger of Garuda Indonesia, Garuda’s subsidiary Citilink, and Pelita Air in a bid to curb national logistics costs.

AMELIA RAHIMA SARI

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