Garuda To Take Control Of Sriwijaya Air
Garuda Indonesia will assume management control of Sriwijaya Group, in a move that will boost the national airline’s market share.
Garuda said it will control Sriwijaya Air Group through its low cost subsidiary Citilink, after an agreement was signed last week.
Sriwijaya Group is headquartered in Jakarta and comprises two airlines, Sriwijaya Air and Nam Air.
Management changes at Sriwijaya are expected after Garuda assumes control, but the extent was not disclosed, nor was the value of any financial transaction between the parties.
The agreement could be extended to include some form of share ownership in Sriwijaya, Garuda said.
Garuda has seen its market share fall as low cost rival Lion Air expands rapidly in the archipelago. The Citilink/Sriwijaya tie up will increase the flag carrier’s market share, but it is unlikely to make much of a dent in the rise of the nimbler Lion Air.