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Joint operation to help Sriwijaya improve performance: Garuda
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A Sriwijaya Air plane takes off. (Shutterstock/File)
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lag carrier Garuda Indonesia president director Ari Askhara has said that the joint operation scheme (KSO) between Garuda Indonesia Group and private airline Sriwijaya Air is aimed at helping improve the operational and financial performance of the latter.
Garuda Indonesia Group, through its subsidiary low-cost carrier PT Citilink Indonesia, announced on Wednesday that it had taken over the operation of PT Sriwijaya Air and NAM Air under a KSO scheme.
Ari said that, with the KSO, Sriwijaya Air was expected to be able to fulfill its obligations to third parties, including Garuda Indonesia Group.
He said under Citilink’s operation, Sriwijya was expected to be able to expand its market segment, network and operations.
“It (joint operation) will be able to accelerate the process of [Sriwijaya Air] restructuring to fulfill its obligation to Garuda Indonesia’s subsidiary,” he said as reported by tempo.co.id, adding that, with the KSO, Garuda Indonesia Group and Sriwijaya Group controlled 52 percent of the domestic aviation market.
Meanwhile, securities firm Koneksi Kapital Sekuritas research head Alfred Nainggolan said the cooperation between Citilink and Sriwijaya Air would positively impact Garuda Indonesia Group.
He said the market segment of the two airlines were similar and, therefore, the cooperation would help improve efficiency. “If there was no economic incentive, such cooperation would never happen,” Alfred said on Wednesday. (bbn)
