Garuda considers majority stake in Sriwijaya Air

Garuda Indonesia is studying its options about a 51% stake in Sriwijaya Air through low-cost unit Citilink. In response to a stock exchange query, Garuda says options under consideration include a debt-to-equity swap, which would see Sriwijaya Air's debts owed to the Garuda Indonesia Group converted into shares. "The study is being made so that [any] transaction would be conducted in accordance with the applicable regulations, and that it provides an optimal result for the company," says Garuda. The carrier's response was made after its commercial director was quoted in a Jan 23 Tempo newspaper report that Garuda is set to take a 51% stake in Sriwijaya Air over the next 4 months. Garuda's CE Ari Askhara was quoted in the same report as saying that a debt-to-equity conversion will be made. <br/>