News
Citilink to take operational and financial control of Sriwijaya
November 16th 2018
Citilink, the Garuda Indonesia Group low-cost subsidiary, has signed a joint venture agreement with Sriwijaya Air Group whereby Citilink will take over the operational and financial management of “medium service” Sriwijaya Air and NAM Air, struggling competitors of Garuda. Read More »
“This joint venture is intended to help Sriwijaya Air Group improve its operational and financial performance by helping Sriwijaya Air to fulfill their commitments or obligations to third parties, including those within the Garuda Indonesia Group,” said Garuda managing director, Ari Askhara.
The Garuda chief added that the joint venture would result in synergies for both companies, including greater network coverage and better capacity management. Ari also flagged the possibility of Garuda purchasing Sriwijaya equity.
“We hope that the JV, which will be managed by Citilink, will assist in the recovery of Sriwijaya Air Group amid an increasingly competitive aviation market,” said Sriwijaya managing director, Chandra Lie.
Sriwijaya has 36 B737 jets. The airline mainly operates domestic flights, although it offers limited scheduled services to China and Malaysia. The carrier’s NAM Air subsidiary has eleven B737s and six ATR 72-600s, which it flies on domestic routes.
