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SOEs minister confirms Garuda Indonesia-Pelita Air merger to proceed

WNAM: by WNAM:
January 3, 2025
in Indonesia
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SOEs minister confirms Garuda Indonesia-Pelita Air merger to proceed
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WNAM REPORT: State-owned Enterprises (SOE) Minister Erick Thohir confirmed on Thursday that the government will proceed with the merger of flag carrier Garuda Indonesia and Pelita Air, a subsidiary of state oil company Pertamina.

At a press conference here, Thohir said he had convened a meeting with the president directors of Garuda Indonesia; Citilink, Garuda’s subsidiary; and Pelita Air to discuss the merger, which he said has been included on the ministry’s six-month road map.

“(The meeting) was to discuss the road map for the next six months. During the meeting, we discussed (the merger) plan,” the minister stated.

Despite the merger of state-owned airlines, the minister emphasized that his side relentlessly strives to synergize activities between state companies operating in Indonesia’s aviation sector.

The minister stated that in addition to directors of state-owned airlines, representatives from airport operator InJourney Airports and air traffic management company AirNav Indonesia attended the meeting.

“State-owned airport operator and airline companies will remain separate. We will continue our deliberation to synergize and restructure the (merged) aviation companies,” Thohir remarked.

The minister expected the merger of state-owned airlines to be completed this year, adding that it will be carried out prudently by conducting thorough studies and assessments.

“What is important from the merger is (that we expect it can offer) the solution to make our national aviation ecosystem more efficient,” he remarked.

In addition to discussing the airline merger, Thohir underscored the need for SOEs in the aviation sector to prepare for an expected increase in transportation demand during the 2025 Eid holiday period during the meeting.

“Preparation for the Eid holiday should commence in March 2025, and we should begin our anticipatory measures,” he remarked.

According to the minister, passenger numbers during the Eid holiday can be fivefold higher than those witnessed during the Christmas and New Year holidays. Hence, careful and effective planning for the homecoming and return flow is essential.

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