Garuda Indonesia Accelerates Group Transformation, Optimizes Fleet To Strengthens Business Ecosystems

Garuda Indonesia (Photo: Antara)

JAKARTA - Garuda Indonesia Group step on the gas to accelerate performance transformation. Under the new management, the consolidation agenda and strengthening of the business ecosystem are the main focus to strengthen the company's operational, financial and governance foundations.

This transformation goes hand in hand with the support of government capital participation through Danantara Indonesia which has been ratified at the Extraordinary GMS, 12 November 2025.

With this support, Garuda Indonesia and Citilink place strengthening and optimizing production capacity, solid commercial performance bases and operations, as well as consolidating group-based business fundamentals as strategic priorities in encouraging equity recovery to a positive level.

Of the total Rp23.67 trillion in capital participation funds, Rp8.7 trillion was allocated to Garuda Indonesia to strengthen working capital and maintenance of the fleet, while Citilink used Rp14.9 trillion for working capital needs and the completion of the Avtur purchase obligation for the 2019-2021 period.

As of this November, performance acceleration measures through the support of SHL (shareholder loan) have allowed Garuda Indonesia to maintain serviceability on 13 aircraft. Citilink has also successfully reactivated nine aircraft since September, so that the total aircraft ready for operation is projected to reach 36 fleets by the end of the year.

As of October 2025, Garuda Indonesia operates 78 fleets with 58 serviceable aircraft, while Citilink operates 64 fleets with 32 serviceable aircraft.

President Director of Garuda Indonesia, Glenny Kairupan, said that this capacity increase is a strong indicator of the transformation that is running on the track.

"With the maintenance of aircraft serviceability both at Garuda Indonesia and Citilink, we see an increasingly solid recovery momentum," Glenny said in an official statement, Friday, November 28.

In the midst of the recovery of the national and global aviation industry, Garuda Indonesia is expanding its connectivity by operating 52 domestic routes to 38 destinations and 20 international routes to 15 destinations. The airline's strategic partnership also strengthens with 21 codeshare partners and 70 Special Prorate Agreements, opening access to 1,228 global routes.

The GarudaMiles loyalty program is a motor for strengthening the service ecosystem, recording the growth of 16 percent YoY members and the increase in partners by 59 percent YoY. The achievement of On Time Performance (OTP) also shows consistency with an average of 82.47 percent until October 2025, even reaching 98.39 percent last May.

"Garuda Indonesia also maintains the IDBBB stable outlook ranking, which also emphasizes financial resilience, operational sustainability, and Garuda Indonesia's commitment as a national aviation group," Glenny said.

Integration of the group's business ecosystem, Citilink, GMF AeroAsia, and Asyst are key in strengthening the post-restructuring operational structure. Although the current year's loss pressure is still there, operational and income indicators show ongoing improvements.

The decrease in operating expenses, increased fleet utilization, and the growth of load factor showed a stronger business foundation. As well as strengthening confidence towards sustainable profitability.

On the other hand, Glenny said that the number of gaps in fleets that are serviceable and external factors such as exchange rates, fuel prices, and maintenance costs still put pressure on bookkeeping.

"However, the company is able to maintain a solid business foundation through strengthening efficiency, fleet productivity and crew, as well as optimizing passenger and cargo income. This momentum is supported by increasingly constructive synergy of stakeholders," he said.

Strategic Pillars Of Performance Transformation

Deputy President Director of Garuda Indonesia, Thomas Oentoro emphasized that the 2025 transformation is not only based on optimizing the strength of production and profitability tools but also on the foundation of sustainable governance and performance.

The strength of operational performance must go hand in hand with governance excellence, financial discipline, accountability business processes and strengthening value creation. Every operational initiative must produce a measured added value for both service users, investors, and the national aviation ecosystem," explained Thomas.

The transformation pillar includes network optimization and frequency of sustainable profitability-based routes, strengthening the charter segment, increasing ancillary revenue, and data-based price strategies to encourage seat occupancy.

With stronger governance and a business focus based on reliable driven market data, Thomas believes Garuda Indonesia Group will stand as an airline with higher value, and a healthier financial foundation.

"As well as increasingly solid global competitiveness," he added.

In the roadmap for equity recovery, Garuda Indonesia has finalized the plan for inbreng assets of GMF AeroAsia and Angkasa Pura Indonesia (API). This action is in line with PMHMETD's plan of 124.27 billion Series B shares, of which GMF AeroAsia will receive non-cash assets in the form of 972,123 square meters worth Rp5.66 trillion, which is projected to reverse GMF equity from minus 248.99 million US dollars to be positive 102.87 million US dollars.

Thomas emphasized that accelerating the recovery of equity is a priority. "The business roadmap progress is getting more solid, accelerating the improvement of the positive equity position, we hope it can be realized in the near future," he said.

Thomas said that the GMF's rights issue last October was part of a series of strengthening its subsidiaries. Further corporate actions remain open in the roadmap next year and will be studied with stakeholders.

"In the future, in line with the 2026 corporate action roadmap in strengthening group business performance, it is possible that further corporate action will be carried out to strengthen the group's business performance. However, all these options will still be studied and discussed further with relevant stakeholders," said Thomas.

With increasingly solid fundamentals, service and operational transformations that continue to be sharpened, as well as the consolidation of an increasingly integrated business ecosystem, Garuda Indonesia Group looks to 2025 as a momentum to accelerate equity recovery and strengthen competitiveness.

"We are committed to being present as a national pride airline that is financially resilient, superior in service, and has a real contribution to Indonesia's connectivity and economy," he said.