TheJakartaPost

Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post

Sriwijaya Air in talks with several investors to boost operation

Sriwijaya Air’s debt to Garuda Indonesia was estimated at US$118 million in addition to $52 million to Garuda’s aircraft maintenance company, GMF AeroAsia, as of June 2019.

Riska Rahman (The Jakarta Post)
Premium
Tangerang, Banten
Tue, January 21, 2020

Share This Article

Change Size

Sriwijaya Air in talks with several investors to boost operation A Sriwijaya Air aircraft takes off in this file photo.. The airline is in talks with a number of investors to boost its operation. (-/Reska K. Nistanto)

P

rivate airline PT Sriwijaya Air is currently in talks with several investors to boost the airline’s operation following the termination of its partnership with national flag carrier PT Garuda Indonesia last year.

Sriwijaya Air’s finance director Andreas Gunawan said the airline hoped there would be strategic investors willing to inject funds to boost the operation, which has significantly declined following the termination of the partnership with Garuda due to a dispute over the use of the latter’s logo.

 “The investors are both from Indonesia and abroad,” he said during a media gathering event in Tangerang, Banten on Monday.

The dispute began after Garuda announced in September it would remove its logo from aircraft operated by Sriwijaya Air and its subsidiary, NAM Air. Both airlines, however, were able to resolve the dispute and continued their cooperation after that.

But the agreement did not last long as in November, Sriwijaya’s lawyer and shareholder Yusril Ihza Mahendra said in a statement that the airline had decided to end the partnership with Garuda.

The partnership was initially meant to save the financially struggling Sriwijaya Air. Under the partnership, Sriwijaya Air could benefit from Garuda Indonesia’s extensive network. However, a power struggle between Sriwijaya Air and Garuda Indonesia executives resulted in an unhealthy relationship.

Andreas said the company would finance its operational needs from its own funds.

to Read Full Story

We accept

TJP - Visa
TJP - Mastercard
TJP - GoPay
{

Your Opinion Counts

Your thoughts matter - share your experiences, suggestions, and any issues you've encountered on The Jakarta Post. We're here to listen.

Enter at least 30 characters
0 / 30

Thank You

Thank you for sharing your thoughts. We appreciate your feedback.