Garuda to merge with other Indonesian tourism businesses

Saturday, 02 Nov, 2020 0

The Indonesian government is mulling a plan to merge Garuda Indonesia with other state-run tourism related companies to cut costs.

It would see the integration of nine state-owned tourism companies including Garuda and low cost arm Citilink.

The merger would include Indonesia’s two airport operators Angkasa Pura, I and II, hotels, and the operations of priority tourism destinations Mandalika in Lombok, Labuan Bajo in Flores and the Borobudur temple and tourism complex in Java.

It would set up a holding company to manage the new entity.

A new holding company would be beneficial to restructuring Garuda’s debt pile, as it owes about $76 million to the airport operators.

Garuda had a first half net loss of $723.26 million.

Talks on a merger have been ongoing for some time and are backed by the President.

"The headwinds in the travel industry provide a good opportunity to start integrating and transforming the tourism and aviation sectors," President Joko Widodo recently said.

Written by Ray Montgomery, Asia Editor

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TravelMole Editorial Team

Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.

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