Following Garuda Indonesia's Steps, Erick Thohir Says Citilink Also Returns Airplanes To Lessor

Minister of SOEs, Erick Thohir. (Mary Handayani/VOI)

JAKARTA - The number of aircraft owned by the national airline Garuda Indonesia is decreasing. This is because some of the aircraft are returned to the lessor or aircraft leasing company. However, not only Garuda returned a number of aircraft to the lessor, but also its subsidiary, Citilink Indonesia.

SOE Minister Erick Thohir said that PT Citilink Indonesia also did the same thing with Garuda Indonesia, namely returning 3 of its aircraft to the lessor. Currently, Citilink only operates 44 aircraft out of 61 fleets owned by the company.

Furthermore, Erick said, the reduction of aircraft will continue to be carried out, if the prices and interest rates for aircraft rentals are still high.

"I have checked Citilink, Citilink has 61 aircraft, 3 were taken by the lessor and Citilink, and I have spoken to the President Director, yes, if the price is too expensive, take it. still flying," he said when met at the Kempinski Hotel area, Central Jakarta, Friday, November 19.

Erick said that the move was made as an effort to increase the airline's financial efficiency. The Ministry of SOEs as the shareholder will focus Garuda Indonesia and Citilink on working on the domestic market. The domestic market niche is considered to have more potential.

Based on the data, said Erick, currently flights are dominated by domestic passengers. Where 78 percent of passengers use airplane services to travel between islands.

Then, continued Erick, local tourists contributed as much as Rp. 1,400 trillion. Meanwhile, 22 percent or around Rp. 300 trillion came from foreign tourists.

"The local tourist (contribution) reached Rp. 1,400 trillion, while foreign tourists were only 22 percent or around Rp. 300 trillion. If we are in business, obviously this is the market because Indonesia is also an archipelagic country," he said.

Citilink aircraft. (Photo: Wikimedia Commons)

According to Erick, focusing on working on the domestic market is the most realistic breakthrough to save the two airlines.

Previously, Erick Thohir admitted that he wanted Garuda Indonesia to focus on working on the domestic market, including its subsidiary Citilink. According to him, Garuda should follow the example of US airlines, which only focus on domestic logging. Because, this will make revenue or income much healthier.

"So if it's Garuda or Citilink, just focus on the domestic market so that the revenue and bottom line are much healthier," he said at the Kick Andy Show, quoted on Tuesday, November 16.

Erick gave an example of the many United States (US) airlines, only a few are working on international routes or logging overseas. According to Erick, Garuda also has a large domestic market, such as US aircraft.

"Garuda has a large domestic market, such as American planes such as United, Continental, Shortest. How many American planes go abroad, if I'm not mistaken, only United from New York go abroad. Everything else is domestic, Shortest," he explained.

Furthermore, Erick said that this step was taken because he did not want the market or the large domestic market owned by Indonesia to be sold cheaply.

"That Garuda Citilink's business model must return to the local market. As we argued earlier, we have a market, don't sell it cheaply. Don't let people just enter," he said.