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AVIATION observer from the Indonesian Aviation Network, Gerry Soejatman spoke regarding the plan to integrate Citilink and Pelita Air into the state-owned aviation and tourism holding, InJourney.
Gerry explained that the entry of state-owned airlines into InJourney’s subholding was not a new plan. This was the initial plan before the merger discourse between Citilink and Pelita Air emerged.
According to him, the inclusion of state-owned airlines into InJourney is a positive thing if the integration is only at the business level. According to him, coordination of business activities between BUMNs for the tourism sector will have a good impact on the development of new destination areas.
On the other hand, Gerry explained that this integration process would have a negative impact if the integration scheme made state-owned airlines “subsidiaries” of InJourney. The non-tourism market sector has the potential to not be fully explored if InJourney only focuses the three state-owned airlines on the tourism segment.
“If these state-owned airlines become InJourney subsidiaries and only focus on the tourism market, this has the potential to be a disaster for them. In my opinion, the integration of business activities [under InJourney] is good, but the integration of business ownership is another story,” said Gerry on Monday (11/6), 2023.
He said, rather than being a subholding under InJourney, state-owned airlines can enter into interline agreements or carry out joint or codeshare operations. According to Gerry, this scheme allows the three airlines to collaborate with each other and deepen their respective market specialization.
“The Garuda Indonesia Group had collaborated with Air Asia. This collaboration includes Citilink’s interlining agreement with Air Asia and in the cargo sector between GA Cargo and Teleport. If something like this already exists, then what is InJourney’s position?” he added.
Previously, Citilink Indonesia CEO Dewa Rai stated that the merger scheme would likely change. Now the Ministry of State-Owned Enterprises (BUMN) plans to include state-owned airlines as subholdings in the holding of BUMN Aviation and Tourism, namely InJourney.
According to him, there will be a possibility of policy changes after serious discussions have taken place among stakeholders. I can’t be sure, but the possibility is that the merger will not take place,” said Dewa at the INACA CEO Talks event, Thursday (11/2), 2023).
Dewa Rai said that Garuda Indonesia, Citilink and Pelita Air were planned to enter the aviation sub-holding under InJourney management. Meanwhile, the entry process for these state-owned airlines is targeted to be completed by the end of 2023 to the first quarter of 2024.
“Currently the Ministry of BUMN and other related parties are reviewing the business fundamentals of these airlines before they are integrated into InJourney,” he concluded. [bisnis.com/photo special]
