REPUBLIKA.CO.ID, JAKARTA -- Garuda Indonesia Group, through its subsidiary PT Citilink Indonesia, took a strategic step by gaining control over the operational management of Sriwijaya Air and NAM Air. This strategic step was realized in the form of a Joint Operation (KSO) scheme carried out by PT Citilink Indonesia (Citilink) with PT Sriwijaya Air and PT NAM Air.
"This joint venture is intended to help the Sriwijaya Air group improve its operational and financial performance, including helping it to fulfill commitments or obligations to third parties, including those within the Garuda Indonesia Group," Managing Director of PT Garuda Indonesia (Persero) Tbk Ari Askhara noted in a written statement in Jakarta on Wednesday.
The KSO was signed on November 9, 2018. Later, the entire Sriwijaya Group's operations, including financials, will be under the management of the KSO.
Askhara stated that for the Garuda Indonesia Group, this joint operation cooperation can have a positive impact, including helping Citilink Indonesia to synergize and expand its market, network, capacity and capability segments, and accelerate the restructuring of Sriwijaya Group's obligations to one of Garuda Indonesia's subsidiaries.
Askhara added that this was a strategic step, so that it directly facilitated synergy between the Garuda Indonesia Group and Sriwijaya Group in managing the air passenger market share of up to 51 percent.
Meanwhile, President Director of the Sriwijaya Air Group Chandra Lie expressed hope that the KSO would help Sriwijaya Air Group's recovery.
"We hope that the KSO, which will be managed by Citilink, would help the Sriwijaya Air Group recover in the midst of an increasingly competitive industry. We believe that the Garuda Indonesia Group has excellent capabilities in managing the airline business," he noted.
The KSO, fully managed by Citilink, will immediately fulfill its duties after the internal processes in each company have been completed.
This cooperation can also be increased to the level of the Sriwijaya Group's shareholding, which will be arranged later.
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