Strengthening the global aviation ecosystem, Capital A, Garuda Indonesia Group forge game-changing, value-driven partnerships to transform Asean travel and logistics
JAKARTA, 27 September 2023 – Capital A, the holding company of the leading Asean airline, AirAsia, together with Garuda Indonesia Group - the national flag carrier of Indonesia, announced its strategic partnership to support the strengthening of the global aviation ecosystem post-pandemic. The partnership between these two entities explores the network expansion across various business lines, including commercial airline services between AirAsia and Citilink, logistics services with Teleport and Garuda Indonesia Cargo, as well as Maintenance Repair and Overhaul (MRO) services with Asia Digital Engineering (ADE), owned by Capital A, and Garuda Indonesia Group's subsidiary, GMF AeroAsia.
Attending the MOU signing ceremony in Jakarta, Indonesia, with Garuda Indonesia President & CEO Irfan Setiaputra, Capital A CEO Tony Fernandes said, “We are witnessing the blossoming of a meaningful partnership between two leading Asean brands that are loved by millions of people in this region, known for best value, quality and choice. Our relationship with Garuda began when Citilink joined our Superapp journey. We are excited to further elevate this relationship by pooling our strengths and resources to add more value to people’s lives.”
President & CEO of Garuda Indonesia, Irfan Setiaputra, stated this collaboration marks a significant milestone in the growing optimism within the aviation industry, which is progressing positively. “We believe that after the pandemic, collaboration within the aviation ecosystem is a necessity that should continue to be optimized. With this commitment in mind, our collaboration with Capital A is expected not only to provide a solid foundation for the business outlook of both companies but also to strengthen our joint commitment to delivering added value in the best aviation services for the community,” Irfan explained.
Irfan emphasised, “Various initiatives undertaken by the Garuda Indonesia Group through collaborations with strategic partners, including Capital A, are a manifestation of the company's commitment to continue growing together, creating a more agile and adaptive aviation industry ecosystem that responds to the challenges of the global aviation industry's performance and delivers a greater impact on the aviation sector's presence in the world.”
The cornerstone of this transformative partnership is an interlining MOU between AirAsia and Citilink, today signed by AirAsia Group CEO Bo Lingam and Citilink CEO Dewa Kadek Rai, poised to provide travellers with unparalleled access to a multitude of underserved third and fourth-tier cities in Indonesia. This marks the very first interlining for the AirAsia Aviation Group Limited. The partnership will leverage on the depth of close to 50 domestic destinations in Indonesia covered by Citilink with the breadth of AirAsia's ASEAN 150 international destinations. Initial launch of selected routes by Q1 2024 will provide seamless transfer experience for both inbound and outbound travellers, with checked-through baggage service and issuance of boarding passes from point of origin.
AirAsia Group CEO, Bo Lingam, stated, “We are thrilled about the start of this new journey for AirAsia, something I have believed is important for our next phase of growth, and we have the most ideal partner in Citilink, whose strong domestic connectivity and our international routes create a powerful synergy. Over the next few years you will be seeing some exciting tie ups like Citilink which will help AirAsia, its partners and of course our guests, in making the world a smaller place. I would like to also thank our partners at airasia MOVE (airasia Superapp) for bringing us together. The symbiotic relationship is creating very exciting opportunities for the AirAsia aviation group.”
“Citilink warmly welcomes the collaboration with AirAsia as an effort to expand Citilink's market presence internationally. Through the integration networks of both airlines, leveraging AirAsia's strength in Asean routes and Citilink's strength in domestic routes, it is hoped that the aviation industry can progress more effectively post-pandemic era. This collaboration also marks a significant milestone for Citilink in delivering added value to customers through broader connectivity. Thus, this collaboration is expected to enhance the flying experience for customers with seamless and hassle-free services,” said Citilink CEO, Dewa Kadek Rai.
This value-driven collaboration between Capital A and Garuda Indonesia strategically extends into several key entities within its ecosystem, further harmonising and strengthening both parties’ ability to better serve customers within the region. At the same time today, Capital A’s logistics venture, Teleport CEO Pete Chareonwongsak signed a partnership agreement with Garuda Indonesia Cargo, represented by Vice President Cargo Commercial of Garuda Indonesia, Denny Perdana Wirawan.
This agreement combines both parties’ air logistics network, which enables both companies to move goods across Teleport’s network of 160 destinations across Asia Pacific and Garuda’s connectivity of more than 90 destinations worldwide more seamlessly, under a single airway bill. Teleport will leverage Garuda’s strong domestic connectivity as well as added skidded capacity into high-demand sectors, such as Singapore, Shenzhen and Hong Kong bound flights. While Garuda will tap into Teleport’s strong network connectivity across Southeast Asia and Greater China network with extended connectivity into key Asia Pacific cities such as Taipei, Sydney, Auckland and Delhi, among others.
Discussions are also underway between Capital A’s aircraft maintenance provider Asia Digital Engineering (ADE) and Garuda Indonesia’s GMF AeroAsia to further explore opportunities for another strategic partnership that will leverage on mutual strengths and efficiencies as well as Asean’s strategic location to deliver greater value-driven, low-cost MRO services to third-party airlines seeking maintenance support.
Mahesh Kumar, CEO of ADE said, “We strongly believe that a partnership between ADE and GMF AeroAsia will be a game changer in the MRO landscape, not only within the Asean region but beyond. With ADE’s cutting-edge technology coupled with GMF AeroAsia’s decades of industry expertise, we can unlock an unprecedented advantage that will elevate the industry to new heights. It reaffirms our unwavering commitment to delivering unmatched excellence and nurturing innovation in aircraft maintenance. The sky is no longer our limit; it is a canvas for creating a brighter, more efficient future.”
Andi Fahrurrozi, CEO of GMF, stated, “Collaborating with ADE is a strategic step that will strengthen GMF's position in the Southeast Asian market. The merging of strengths between GMF and ADE will enhance the competitiveness of Southeast Asian MRO in the global market, emphasising integrated services with competitive pricing. We aim to seize the opportunities to support sustainable profitable growth.”
*** END ***
About Capital A
Capital A (formerly known as AirAsia Group) is an investment holding company with a portfolio of synergistic travel and lifestyle businesses that leverage data and technology, including the world’s leading low-cost carrier, AirAsia, an aviation services group, airasia MOVE (formerly known as airasia Superapp) and fintech BigPay as well as logistics venture Teleport. Capital A’s vision is to create and deliver products and services that focus on offering the best value at the lowest cost, underpinned by robust data accumulated over 20 years in operation and one of Asia's leading brands that remains committed to serving the underserved in Asean and beyond.
Media Contact for Capital A:
Name: Maryanna Kim, Head, Corporate Communications
Email: maryannakim@airasia.com
About Garuda Indonesia Group
Dedicated as the national flag carrier airline of Indonesia for more than seven decades, Garuda Indonesia is committed to continuously connecting the archipelago while proudly representing the nation worldwide. With its top-notch fleets and service concept that emphasizes Indonesian hospitality, Garuda Indonesia offers a range of integrated aviation services, including the full-service segments, Garuda Indonesia, the low-cost carrier, Citilink, the maintenance, repair, and overhaul (MRO) services, GMF AeroAsia, hospitality and travel services provided by Aerowisata and GIH France, as well as IT and digitalization services through Aero System Indonesia (Asyst) and Sabre Travel Network Indonesia.
Media Contact for Garuda Indonesia Group:
corpcomm@garuda-indonesia.com