Romys Binekasri, CNBC Indonesia
Market
Monday, 28/08/2023 10:40 WIB
Photo: Garuda Indonesia’s Boeing 737-800 NG aircraft arrives at Terminal 3 of Soekarno-Hatta International Airport. (Doc Garuda Indonesia)
Jakarta, CNBC Indonesia – The Ministry of State-Owned Enterprises (BUMN) plans to merge Garuda group airlines namely Garuda Indonesia and Citilink with Pelita Air. Special Staff to the Minister of BUMN Arya Sinulingga said it was not yet known whether the merger of the three airlines would have an impact on ticket prices.
According to him, it is not yet known whether Pelita Air’s position will be in the middle between Garuda Indonesia and Citilink or below the two airlines. Of course, each airline will target a different level.
“Surely the class is different. Now it’s still being counted, the class is still different. Will Garuda’s class be at the top level, Pelita in the middle, Citilink at LCC, don’t know yet, we’ll see how it goes,” he said at the Ministry of BUMN Jakarta, quoted Monday (28/8) .
Arya ensured that the merger of the three airlines would become one management. The hope is that the management of red peat airlines will be efficient.
“Citilink is under Garuda, Pelita doesn’t know yet, whether it will be equal to Citilink, or within Citilink itself, they don’t know yet. That’s just for efficiency, all one management,” he said.
Previously, BUMN Minister Erick Thohir planned to merge the state-owned airline Garuda group with Pelita Air. Later, the airline cluster efficiency program will be like Pelindo.
According to him, this step was taken to reduce logistics costs in Indonesia so that it would make it easier for the business world. Currently, said Erick, there are three SOEs engaged in aviation, namely Garuda Indonesia, Citilink and Pelita Air.
The rescue made to Garuda Indonesia is considered necessary to be maintained considering that Indonesia still needs to have a flag carrier. When Garuda Indonesia was fighting for, Erick explained, at the same time Pelita Air had been prepared.
“With the aim that Indonesia will continue to have a national flag carrier if Garuda fails to be rescued,” Erick said in Tokyo, Japan, through a written statement, quoted on Wednesday (23/8).
However, Erick revealed further that Indonesia still lacks around 200 aircraft. The calculation was obtained from a comparison between the United States and Indonesia.
When compared to the United States, there are 7,200 aircraft serving domestic routes. Where there are 300 million population whose average GDP (income per capita) reaches US $ 40 thousand.
“While in Indonesia there are 280 million people who have a GDP of US$ 4,700. That means Indonesia needs 729 aircraft. Even though now, Indonesia only has 550 aircraft. So our logistics matters are not appropriate,” he explained
Watch the video below:
Garuda Boss Opens Up About GIAA’s Merger & Business Strategy
(fsd/fsd)
2023-08-28 03:40:02
#GarudaCitilinkPelita #Merger #Cheaper #Tickets
