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Budi Karya expects solution to Citilink-Sriwijaya Air management cooperation fiasco

13 September 2019 15:58

TANGERANG - Transportation Minister Budi Karya Sumadi hopes that the issues surrounding the management cooperation agreement between Citilink Indonesia and Sriwijaya Air, which surfaced after the latter made changes in its board of directors recently, can soon be resolved.

“I have asked the Directorate General of Air Transport to carry out sounding and figure out what is really happening, so that we can provide a solution,” said Mr Sumadi as quoted by Bisnis Indonesia, Thursday (12/9).

The Ministry of Transportation, he added, will also investigate the legal aspects regarding the status of former members of Sriwijaya Air’s board to prevent negative impact on the airline’s operations.

The management cooperation agreement between Citilink and Sriwijaya is under close scrutiny following the allegation that Sriwijaya reorganised its board unilaterally. Both airlines have met with representatives from PT Bank Negara Indonesia (Persero) Tbk, PT Garuda Maintenance Facility AeroAsia Tbk, and PT Pertamina (Persero) for clarification.

Citilink has stated that both airlines have yet to decide whether the agreement will be continued, though Citilink, a low-cost subsidiary of PT Garuda Indonesia (Persero) Tbk, prefers that the agreement be continued. (MS)

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