Saturday, 19 October 2019

Garuda Indonesia Group Takes Over Sriwijaya Air Group

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  • Sriwijaya Air. TEMPO/Subekti

    Sriwijaya Air. TEMPO/Subekti

    TEMPO.CO, Jakarta - Garuda Indonesia Group through its subsidiary PT Citilink Indonesia took over operational management of Sriwijaya Air and NAM Air. Garuda Indonesia president director Ari Askhara said PT Citilink Indonesia with PT Sriwijaya Air and PT NAM Air signed an operation cooperation agreement (KSO) on November 9 to realize the strategic move.

    “All operational of Sriwijaya Group including its financial management will be under the management of the KSO,” said Ari in a written statement on Wednesday, November 14.

    Ari explained the agreement aimed at helping Sriwijaya Air Group to improve its operation and financial work, as well as fulfill its commitment or obligations to the third party, among others, Garuda Indonesia Group.

    Read: Merpati Can Fly Again under Certain Conditions: Minister 

    The joint operation, Ari continued, would create positive impacts for Citilink Indonesia as it could synergize and expand its market segment, network, capacity, and capability. “Also, it can expedite the completion of Sriwijaya Group’s duties to one of Garuda Indonesia subsidiaries,” he noted.

    Garuda Indonesia Group and Sriwijaya Group, through this strategic operation, could manage the market share of air transportation up to 51 percent.

    Meanwhile, Sriwijaya Air president director Chandra Lie pinned hoped the KSO agreement managed by Citilink could help the company's revitalization amid competitive aviation industry business.

    “We believe Garuda Indonesia Group has good capabilities in managing airline business,” Chandra said.

    KARTIKA ANGGRAENI