The Jakarta Post
The first phase of the cooperation to be implemented is a special prorate agreement (SPA) and codeshare agreement (Shutterstock/File)
Garuda Indonesia Group and Sriwijaya Group are set to sign a codeshare commercial cooperation agreement in a bid to strengthen their network cooperation in Indonesia.
Following the agreement, both companies seek to expand their own service by providing more flight options to customers of their airlines, which include Garuda Indonesia, Citilink, Sriwijaya Air and NAM Air. Such codeshare cooperation is a first for both groups, and serves as the first step for them to conduct other strategic collaborations in the future.
The first phase of the cooperation to be implemented is a special prorate agreement (SPA) and codeshare agreement. The former includes cooperation on routes only offered by Garuda or Sriwijaya. For instance, the Yogyakarta-Palembang route operated by Sriwijaya will be offered by Garuda to its customers.
Meanwhile, the codeshare agreement combines the flights operated by the two groups. For example, for Jakarta-Sampit via Semarang route, the Jakarta-Semarang flight will be operated by Garuda, meanwhile the Semarang-Sampit route will be operated by Sriwijaya.
"This cooperation will not only strengthen the network of the two airlines but also increase market share, since there are still many cities with potential growth of passengers that have not been tapped by Garuda Indonesia. Hopefully this cooperation with Sriwijaya Group can help increase our profitability," said Garuda Indonesia president director Pahala N. Mansury in a statement on Wednesday.
Meanwhile, Sriwijaya Group president director Chandra Lie considers the cooperation a historical moment in Indonesia's airline service scene.
"The commitment of this cooperation hopefully will bring positive contribution to the development of Indonesia's air transportation and prioritizing the interest of customers who travel from Sabang to Merauke," said Chandra. (kes)