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Thursday 28 September 2023

Leading Asian airlines sign up for strategic alliance

Big news in the world of Asian aviation this week with Capital A, the holding company for AirAsia brands, and Garuda Indonesia Group announcing a strategic partnership that should work well for regional flyers.

The leading low-cost airline in the region and the national flag carrier of Indonesia aim to "strengthen the global aviation ecosystem post-pandemic".

The partnership between the two entities will explore network expansion across various business lines, including commercial airline services between AirAsia and Indonesian domestic airline Citilink, logistics services with Teleport and Garuda Indonesia Cargo, as well as maintenance, repair and overhaul services.

The MOU signing ceremony in Jakarta, Indonesia, was attended by Garuda Indonesia president and CEO Irfan Setiaputra and Capital A CEO Tony Fernandes.

“We are witnessing the blossoming of a meaningful partnership between two leading Asean brands that are loved by millions of people in this region, known for best value, quality and choice," said a very enthusiastic Fernandes.

"Our relationship with Garuda began when Citilink joined our Superapp journey. We are excited to further elevate this relationship by pooling our strengths and resources to add more value to people’s lives.”

Setiaputra said the collaboration marks "a significant milestone".

“We believe that after the pandemic, collaboration within the aviation ecosystem is a necessity that should continue to be optimised," he said.

"With this commitment in mind, our collaboration with Capital A is expected not only to provide a solid foundation for the business outlook of both companies but also to strengthen our joint commitment to delivering added value in the best aviation services for the community.”

The partnership will leverage on the depth of close to 50 domestic destinations in Indonesia covered by Citilink with the breadth of AirAsia's 150 international destinations.

Selected routes in early 2024 will provide seamless transfer experience for both inbound and outbound travellers, with checked-through baggage service and issuance of boarding passes from point of origin.

Discussions are also underway between Capital A’s aircraft maintenance provider Asia Digital Engineering (ADE) and Garuda Indonesia’s GMF AeroAsia to further explore opportunities for another strategic partnership.

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