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Business Refocus, Garuda Indonesia to Evaluate Subsidiaries

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11 October 2017 20:42 WIB

Pahala Nugraha Mansury, President Director of PT Garuda Indonesia (Persero) Tbk. ANTARA/Fajrin Raharjo

TEMPO.CO, Jakarta - State airline Garuda Indonesia (IDX: GIAA) will evaluate a number of its subsidiaries. CEO says the corporate`s act is aimed at helping the airline refocus its business, focusing more on five main segments pillars.

"Garuda aims to be an aviation service group," the airlines CEO Pahala Mansury said in Jakarta yesterday.

According to Pahala, the five business pillars are the main airline (Garuda Indonesia), the low-cost carrier (Citilink), maintenance and repair business unit (GMF Aero Asia), aviation services, and customer service.

Pahala said he is looking for ways to develop subsidiaries that are not directly related to the five main segments.

According to Pahala, listing shares on the Indonesia Stock Exchange (IDX) is not the only way to develop subsidiaries' capacity.

GMF AeroAsia recently became a public company after listing its shares at the IDX, the 25th company to have done so in this year.

GMF released 2.82 billion shares to the public of issue, which is worth 10 percent of the company's paid-in capital. In the initial public offering (IPO), the shares were offered for Rp400 per unit, garnering GMF Rp1.27 trillion proceeds.

Pahala said the IPO by GMF was not done to seek the funding only. "We want to strengthen and increase the capacity of GMF," he remarked.

ADITYA BUDIMAN



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