Airlines Garuda Indonesia announces strategic collaboration with Citilink

Garuda Indonesia established its own low cost brand Citilink in 2001. In 2011 the carrier took delivery of its first Airbus A320 aircraft and became a separate business entity I the Garuda Indonesia Group.

Now, seven years later, the Indonesian newspaper Tribun-Bali.com reports, Garuda Indonesia’s management decided to enhance the strategic cooperation between the parent company and the low cost subsidiary. The strategic collaboration includes the development of aviation network and the utilization of distribution channels that are owned.

In a first step, the cooperation includes codeshare agreements and Garuda Indonesia will place its flight numbers on Citlink flights. Additionally, Citilink tickets will be sold in Garuda’s sales outlets.

The cooperation is part of a long-term business strategy with the name “Sky Beyond 3.5.” which aims at reducing costs and increasing earnings. As part of the project, Garuda is monitoring all routes and cut unprofitable routes. In a first step, the long-haul route from Jakarta to London-Heathrow will end in October. Garuda will focus on partnerships and codeshare agreements like for example with KLM, which has a hub at the only remaining European Garuda Indonesia destination Amsterdam.

"Hopefully this synergy will certainly not only strengthen the position of Garuda Indonesia Group in the national aviation industry but this collaboration is also expected to provide more value for service users through network development and accessibility offered from this synergy" President Director of Garuda Indonesia, Pahala N. Mansury said to the Indonesian newspaper Tribun-Bali.com  

Garuda Indonesia operates a fleet over over 140 aircraft on domestic and international routes from several hubs in Indonesia. Beside its single-aisle fleet, which consists of ATR72-600, Bombardier CRJ1000 and Boeing 737-800, the airline operates a long-haul fleet with Boeing 777-300ER and Airbus A330.

The low cost subsidiary Citilink focuses on Indonesian domestic operations with a fleet of 44 Airbus A320, eight A320 Neo and two remaining Boeing 737-500. The airline is waiting for another 27 ordered Airbus A320 Neo.