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Garuda Official Mentions Plan to Merge Citilink with Pelita Air

Translator

Laila Afifa

Editor

Laila Afifa

10 April 2024 22:21 WIB

TEMPO.CO, Jakarta - Chief Executive Officer of PT Garuda Indonesia (Persero) Tbk., Irfan Setiaputra, spoke frankly about the plan to merge the airline Citilink with Pelita Air.

Irfan stated that discussions regarding the merger plan of the two state-owned enterprises (SOEs) are still ongoing. However, Irfan mentioned that the merger of Citilink with Pelita Air will be conducted simultaneously with the merger process of Garuda Indonesia with PT Aviasi Pariwisata Indonesia or InJourney.

"Maybe it will be done together, it seems to be joining the InJourney initiative," said Irfan when met during the Eid al-Fitr gathering in 2024/1445 H at the Ministry of Transportation on Wednesday, April 10, 2024. "Well, this is what the Ministry of SOEs is currently working on."

Irfan couldn't say much about the progress of the national airline merger process. He stated that it is the business owner's affair. However, he mentioned that intensive discussions regarding the merger will be held after Eid al-Fitr.

Irfan also stated that the merger process is targeted to be completed and determined before October 2024. This month coincides with the end of the current government's term. "This is also appropriate to ensure clarity. So that there won't be any future debts," said Irfan.

Previously, the plan to merge three state-owned airlines, namely Garuda Indonesia, Citilink, and Pelita Air, was announced by the Minister of SOEs, Erick Thohir. Erick Thohir stated that the plan is one of the efforts to continuously reduce logistics costs in Indonesia to alleviate the burden on the two businesses.

Erick Thohir then cited the merger carried out on PT Pelabuhan Indonesia (Persero) or Pelindo. Previously, Pelindo had four companies but then became one. The merger, he said, had an impact on reducing logistics costs from 23 percent to 11 percent.

"We also strive for Pelita Air, Citilink, and Garuda, to merge to reduce costs," said Erick Thohir, as quoted from Antara.

RIRI RAHAYU

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