Garuda Indonesia to take over operations of rival Sriwijaya Group

Garuda Indonesia said Wednesday it would take over operational control of rival Sriwijaya Group, giving them a majority share of the fast-growing domestic aviation market. Under the agreement, Garuda, via its unit Citilink, aims to improve the operational and financial performance of Sriwijaya Air Group, including in meeting its financial commitments to Garuda Group, it said. Garuda has been battling for market share against the country’s No. 1 player, Lion Air, which last month suffered a crash of a Boeing Co 737 MAX jet, killing all 189 people on board. The take over will involve change in Sriwijaya’s management, said Garuda spokesman Ikhsan Rosan. “With this operational cooperation, we hope Sriwijaya will get healthier ... With healthier operation, they will earn profit and fulfil their obligations,” Rosan said, but declined to disclose Sriwijaya’s financial obligations to Garuda. The partnership could also be escalated to share ownership in Sriwijaya Group, Garuda’s statement said.<br/>