The Indonesian government minister responsible for state-owned enterprises has reiterated that Garuda Indonesia (GA, Jakarta Soekarno-Hatta) (GA, Jakarta Soekarno-Hatta) and its low-cost subsidiary Citilink (QG, Jakarta Soekarno-Hatta) will focus on domestic operations in the future rather than international flying.
Minister Erick Thohir told the Antara news agency last week that codeshares and joint ventures will form the backbone of Garuda's once extensive international network, leaving most of the airline's 68 aircraft to fly locally. "Garuda Indonesia is focused on domestic flights," he said.
The minister also said Citilink would concentrate on domestic flying, saying that doing so was a natural fit for both carriers, given Indonesia is a archipelago of many islands and relies on aircraft and ships for inter-island movements. He also pointed out that 78% of Garuda's customers are domestic passengers.
The ch-aviation PRO airlines module reveals that Garuda Indonesia flies to 55 destinations in 11 countries, including 41 domestic destinations. Citilink flies to 52 destinations in five countries. However, only four of those destinations - Singapore Changi, Dili, Kuala Lumpur International, and Penang - are located outside the country. Since Garuda Indonesia entered into the business restructuring process in 2021, government officials have consistently said that the international network of both airlines would shrink.
Coinciding with Thohir's recent comments, Garuda Indonesia has announced that it will "deepen" its relationship with Singapore Airlines (SQ, Singapore Changi) and form a joint venture (which remains subject to government approval). The JV will cover routes between Singapore and Denpasar, Jakarta Soekarno Hatta, and Surabaya. In 2021, the two carriers signed a memorandum of understanding to strengthen their commercial and operational ties.
"The joint venture agreement is also a part of our effort to improve our company's performance through our network strategy by optimising our network through partnership with our strategic airline partners," said Garuda Indonesia CEO Irfan Setiaputra. "Both airlines agreed to explore further more advantages for both our customers, allowing them to enjoy various flight schedules with enhanced value services within the networks of Garuda Indonesia and Singapore Airlines."