Garuda-Pelita Air merger must wait for stronger businesses
The combination was previously projected for completion in the first quarter of 2026, with Garuda becoming the parent of Citilink and Pelita Air.
Garuda Indonesia and Pelita Air need to improve their businesses before their planned merger can proceed, Danantara chief operating officer Dony Oskaria said in Jakarta on 26 October.
Dony said merging the state-owned airlines while their condition remained inadequate risked making both a burden. He said the combination would take place after each airline had strengthened its position.
Both carriers are concentrating on business transformation, he said. The changes will cover services before departure, on board and after arrival, including check-in procedures and the quality of their aircraft fleets.
Dony also said Garuda would refresh its branding but retain its current name. The airline is reviewing elements including uniforms, and its visual identity may be redesigned.
The merger had earlier been projected for completion in the first quarter of 2026. The plan would place Citilink and Pelita Air under Garuda as their parent company. Pelita Air is currently a subsidiary of PT Pertamina (Persero).
Danantara, Garuda's main shareholder, will continue overseeing the airline's business transformation, Dony said.
