AirAsia Indonesia’s proposal to acquire Garuda’s low-cost carrier Citilink rejected

PETALING JAYA: AirAsia Indonesia’s proposal to acquire Garuda Indonesia’s low-cost carrier (LCC) subsidiary Citilink Indonesia has been rejected, said Garuda Indonesia president director Ari Askhara.

According to a report by The Jakarta Post, which quoted, Ari said that Citilink is doing better than AirAsia, even under Garuda’s new management.

The report said that there had been no internal talks within Garuda and no orders from shareholders to sell Citilink Indonesia.

The airline also did not receive any official proposal from AirAsia Indonesia.

Ari also conceded that talks had taken place between Garuda and AirAsia since Pahala N. Mansury joined Garuda but assured that the talks were about possible cooperation, not an acquisition.

The Jakarta Post said Citilink Indonesia transported a total of 15 million passengers in 2018, a 22% increase from the previous year at 12.3 million. This year, it is targeting to attract 18 million passengers.

On Monday, PT AirAsia Indonesia president director Dendy Kurniawan reportedly said that the company was interested in acquiring Citilink because of the similarities between the two carriers.

“Both are LCCs. We are strong in international routes, while they (Citilink) are strong domestically. Both operate the Airbus. We have also a similar rating of pilots and cabin crew members,” said Dendy, as quoted by the daily.

Headquartered in Jakarta, Citilink was established in 2001. Last year, it was named the named the most punctual airline in Southeast Asia.

Source: The Sun Daily

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