The CEO of Indonesia’s flag carrier has confirmed that the airline will continue with the planned merger with Pelita Air. This would transform both airlines into a state-owned company, known by many as InJourney. This move can only happen once Garuda returns to positive equity, per ch-aviation.
The slated merger has existed for a while, first being announced in August 2023. The merger, which will also include Indonesian airline Citilink, hasn’t been able to go ahead due to financial issues. Garuda has been struggling to pay off $9.8 billion worth of debt since 2021.
It then exited the process of paying back debts a year later, having paid off $5.1 billion and undergone a fleet restructure, as well as reshaping its routes and operations. This still hasn’t managed to save the airline from financial issues, with its latest financial report stating that it is still at negative equity.
Commenting on the merger to an Indonesian House of Representatives meeting, Setiaputra said, “Discussions are ongoing regarding the merger’s model, timing, and how Garuda will be integrated InJourney.”
