Joint Venture Garuda Indonesia And Singapore Airlines Complete Before The Substitution Of Government

JAKARTA - President Director of PT Garuda Indonesia (Persero) Tbk Irfan Setiaputra targets the joint venture scheme with Singapore Airlines to be signed before the new government changes in October.

Irfan said, with this joint venture, each of them can share income or revenue sharing.

In addition, he said, passengers can exchange Garuda Miles and KrisFlyer if this collaboration runs.

"This is still waiting for technical, a little fine tuning on the IT side. God willing, before the presidential inauguration, we will definitely announce it when it is ready," he said during a joint meeting with Commission VI of the DPR, at the DPR RI Building, Jakarta, Wednesday, July 3.

Met after the meeting, Irfan explained that his party was also still waiting for approval from the Business Competition Supervisory Commission (KPPU). Even so, he said the discussion between the two companies was positive.

"So it must also be approved by KPPU, we are still talking about getting support, basically with JV that is the route that we fly, namely JKT-Singapur, SBY-Singapur, Bali-Singapur, our prices are the same, our services are the same. So people want to take the SQ on that route plus minus the same," he explained.

"We then have a revenue share. So everyone wants to move to Garuda, so we must give some of our revenue to them, so that we call it competition not to kill," he continued.

According to Irfan, the scheme will be completed as soon as possible based on the agreement between Garuda Indonesia and Singapore Airlines. Irfan also ensured that this scheme would not violate business competition rules.

They also have to go through the business competition approval process. We don't want to be detrimental and considered to have a monopoly or oligopoly, right," he explained.

He said this cooperation would benefit the two companies for a certain period of time.

However, said Irfan, if in the middle of the trip it is detrimental, it can be stopped.

"It should be beneficial for both parties, both financially and otherwise. But we both know that in the agreement there is a period of time. So if it turns out that one of the parties feels a loss on the way, we can stop or revise the calculation of the numbers. We and SQ are now quite often in collaboration," he said.

Previously, Garuda Indonesia and Singapore Airlines conducted a commercial cooperation assessment through the 'Joint Venture' scheme approach to expand the network of flight routes between the two airlines and increase passenger capacity in May 2023.

This work is a follow-up to the expansion of commercial collaboration that has been established since 2021.

This time, cooperation was carried out for the Singapore-Denpasar, Singapore-Jakarta and Singapore-Surabaya flight routes.