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Garuda says merger with InJourney may happen this year
Merger can only proceed if Garuda's financial condition improves.
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Workers clean a Garuda Indonesia Boeing 737-800 NG airplane at the Garuda Maintenance Facility (GMF), AeroAsia, at Soekarno-Hatta International airport in Cengkareng, in this undated photo. (Reuters/Willy Kurniawan)
A
merger between flag carrier Garuda Indonesia and state-owned tourism company InJourney may transpire this year, an airline executive said on Thursday.
Garuda Indonesia services and commerce director Ade Susardi said he did not rule out such a possibility, especially if the company can fulfill the required terms and conditions to realize the plan, but he did not elaborate further on the details.
“The target [for the merger] finalization is set for this year if the [terms and conditions] can be satisfied,” he said in Jakarta on Thursday, as quoted by Tempo.
Garuda Indonesia was slated to become part of the tourism company since its inception in October 2021.
However, the government decided not to realize the move because of financial woes troubling the national carrier. The airline gained approval from its creditors to restructure Rp 142 trillion (US$9 billion) of its liabilities in June 2022.
The plan to incorporate Garuda into InJourney emerged after the carrier concluded its liability restructuring and showed improvements regarding its financial condition.
InJourney has several subholdings in the aviation industry, namely PT Integrasi Aviasi Solusi, which provides aviation support services, cargo services and logistics, ground handling, aviation hospitality and operations support, as well as airport operator PT Angkasa Pura Indonesia.
