PT Garuda Indonesia Tbk (IDX: GIAA), state-owned flight carrier, and PT Sriwijaya Air agreed to extend the interim agreement for the next three months, said the senior official on Thursday (07/11) - Photo by NAM Air

JAKARTA (TheInsiderStories)Garuda Indonesia Group, through its subsidiaries PT Citilink Indonesia, took over the operational management of PT Sriwijaya Air and PT NAM Air, said the company on Wednesday (14/11). The agreement has been signed on Nov. 9, 2018.

According to PT Garuda Indonesia Tbk (IDX: GIAA) CEO Ari Askhara, this partnership aims to improve the operations and the financial problems of Sriwijaya Air, including to help its fulfill commitments or obligations to a third party.

Through this partnership, he said, Citilink have an ability to synergyse and expand its market segment, network capacity, its versatility, as well as speeding up the restructuring of the settlement obligations of the Sriwijaya under the Group.

“This step is a strategic step to help Garuda Indonesia Group synergies and Sriwijaya Group in managing passenger air transport market share to 51 percent,” said Askhara in a written statement received by TheInsiderStories.

President Director of Sriwijaya Air, Chandra Lie believed Garuda has a very good capability in managing business Airline and having the Alliance also could reaffirm position Citilink Indonesia and Sriwijaya Air in domestic market.

Earlier, Garuda Indonesia and Sriwijaya Air already doing cooperation in the form of a ‘code share’ flights that will meet the domestic market share in Indonesia more than 50 percent. The code share could maximize the capacity of aircraft by combining 104 Garuda’s aircrafts and 58 Citilink’s aircrafts.

By this cooperation, the route also could be developed not only the routes traversed by Garuda, but can also be extended by using the routes of Sriwijaya Air.

Code share cooperation is carried out by combining flights owned by both airlines. Through this cooperation, Garuda Indonesia and its unit will place the flight number on the code of flight with Sriwijaya  or NAM Air and vice versa.

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