The Pros and Cons of Merging Three State-Owned Airlines

The merger of three state-owned airlines in Indonesia is currently in progress, aiming for completion by early next year. However, doubts remain about its effectiveness in significantly lowering the country's logistics expenses.

Lorenzo Anugrah Mahardhika & Hendra Wibawa

1 Sep 2023 - 16.35
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The Pros and Cons of Merging Three State-Owned Airlines

Pelita Air aircraft/Photo/JIBI

Bisnis, JAKARTA—The merger of three state-owned airlines in Indonesia is currently in progress, aiming for completion by early next year. However, doubts remain about its effectiveness in significantly lowering the country's logistics expenses.

The latest update regarding the proposed merger of PT Garuda Indonesia (Persero) Tbk., Citilink Indonesia, and Pelita Air was once again conveyed directly by Minister of State-Owned Enterprises (SOE) Erick Thohir. 

Following his participation in a Work Meeting with Commission VI of the DPR at the Jakarta Parliament Complex on Thursday (31/8), the minister, who is also the owner of PT Adaro Energy Tbk., revealed a merger plan for the three state-owned airlines.

As per his statement, the SOE Ministry is actively guiding the three airlines according to their specific market targets. Garuda Indonesia will continue to focus on serving the premium segment, Pelita Air will cater to the medium market, and Citilink will operate within the low-cost carrier (LCC) market. 

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© Copyright 2024, Hak Cipta Dilindungi Undang - Undang.