AirAsia Making Eyes at Citilink Inonesia
Citilink Indonesia Denies Any Takeover Talks Underway with AirAsia
The Jakarta Post reports that rumors of a possible takeover of the Garuda Indonesia subsidiary Citilink Indonesia by Malaysia’s low cost airline AirAsia have been dismissed by the Indonesian National flag carrier.
Quoted by tempo.co.id on Tuesday, March 5, 2019, Garuda president director Ari Askhara said: Citilink is doing better than AirAsia, even under Garuda’s new management.”
Askhara confirmed that no internal discussions has taken within Garuda pursuant to the sale of Citilink Indonesia. Moreover, no official possible purchase of the State-owned low cost carrier has been discussed/
The only discussions to date have been between Garuda Indonesia and AirAsia have been on interline cooperation and not regarding any plan for acquisition.
Citilink Indonesia carried 15 million passengers 2018, up 22% since 2017 when the airline carried 12.3 million passengers. Citilink Indonesia is targeting to carry 18 million passengers.
The president director of PT AirAsia Indonesia Dendy Kurniawan confirmed his company’s general interest an acquisition of Citilink Indonesia due to the similarities share by the two LCC (low cost carriers) companies.
On Monday, PT AirAsia Indonesia president director Dendy Kurniawan said the company was interested in acquiring Citilink because of the many similarities between the two LCCs.
Dendy explained: “Both are LCCs. We are strong in international routes, while they [Citilink] are strong domestically. Both operate the Airbus 31. We have also a similar rating of pilots and cabin crew members.”
Remaining non-committal, Dendy said: “We are interested. If Citilink’s shareholders welcome our offer, we will thank God. But if not, it is no problem.”