Indonesia is currently considering a merger between its national airline, Garuda Indonesia, and Pelita Air, an affiliate of energy conglomerate Pertamina.
This move aims to provide more affordable airfare for its citizens. The consideration comes in the wake of Garuda’s deal last year with creditors to manage its hefty $9 billion debt.
Dendy Kurniawan, Pelita Air’s head, voiced the company’s support for the merger, which is being assessed by the state-owned enterprises (SOE) ministry. Kurniawan believes that this potential union would bolster the aviation sector and ensure more pocket-friendly ticket rates.
Local news outlets reported that Erick Thohir, the SOE minister, expressed his intentions to consolidate Pelita Air with the Garuda group, encompassing its budget airline division, Citilink. Thohir envisions this merger as a way to curb the nation’s logistics expenses and bolster its fleet. He emphasized the need for a whopping 179 additional aircraft.
As of June, Garuda’s fleet comprised 101 airplanes, as noted on its official site, while Pelita Air has a fleet of 7, as mentioned by its CEO. Garuda’s Chief Executive, Irfan Setiaputra, confirmed ongoing discussions about the possible merger.
