Garuda Group-Pelita Air Merger, Fate Of Customers And Workers Questioned

Pelita Air illustration (Photo: Doc. Antara)

JAKARTA - The plan to merge or merge state-owned airlines, namely Garuda Group, in this case Garuda Indonesia and Citilik, with Pelita Air has drawn criticism. One of them is about the fate of customers and workers in these three companies.

As is known, Minister of State-Owned Enterprises (BUMN) Erick Thohir plans to merge or merge three state-owned airlines Garuda, Citilik and Pelita Air.

Aviation Observer Alvin Lie questioned whether later if the three companies were combined, Garuda Indonesia could serve Citilink and Pelita Air customers.

The reason, said Alvin, these three state-owned airline companies have different services. Where Garuda is an airline with a full service type. This means that the services provided are fully starting from entertainment on an airplane, food and others.

The issuer with the stock code GIAA, continued Alvin, also has its own market share which is loyal and has high service absorption.

Meanwhile, Citilink and Pelita Air, said Alvin, are low-cost carrier airlines (LCC).

"This is clearly much different. If all three mergers are merged, three are one, this flight business permit in Indonesia means that Citilink's business license and Pelita's validity permit will be released because later there will be no Citlik, Pelita, only Garuda," he told VOI, Wednesday, August 23.

Will Garuda be able to accommodate Citilink and Pelita Air customers now? The character is different and Garuda customers who are usually spoiled with premium exclusive services when mixed with Citilink and Pelita Air customers will they be comfortable?," he continued.

Furthermore, Alvin even considered that it could be that later Garuda would lose its loyal customers.

"Couldn't even lose customers. This is just a customer aspect," he said.

In terms of human resources (HR), said Alvin, the merger of these three companies will make it inefficient. The reason is, these three companies each have their own characters.

"The procedure itself has its own corporate culture. When the three companies are merged with human resources? Can they collaborate as one?," he said.

"And if three are made one but the human resources are the same too, the organizational structure is the same, where is the efficiency? If you want efficiency, will you then lay off massive layoffs, now those are things that need to be questioned," he continued.