Friday 29 Mar 2024
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KUALA LUMPUR (March 7): AirAsia Indonesia's proposal to acquire low-cost carrier (LCC) Citilink Indonesia has been rejected by Garuda Indonesia, The Jakarta Post reported today, quoting Garuda president director Ari Askhara.

Citilink is a subsidiary of Garuda, according to The Jakarta Post report, which quoted a tempo.co.id report.

The Jakarta Post quoted Ari as claiming that "Citilink is doing better than AirAsia, even under Garuda's new management".

At the time of writing this theedgemarkets.com report, AirAsia had not issued a statement in response to Ari's comments.

The Jakarta Post quoted him as saying there were no internal talks within Garuda and no orders from shareholders to sell Citilink. He said Garuda has not received an official proposal from AirAsia Indonesia to buy Citilink.

According to The Jakarta Post, he conceded that talks have taken place between Garuda and AirAsia but assured they were about possible cooperation, not an acquisition.

The Jakarta Post reported this today after AirAsia Indonesia president director Dendy Kurniawan said on Monday the company was interested in acquiring Citilink because of the similarities between the two LCCs.

"Both are LCCs. We are strong in international routes, while they [Citilink] are strong domestically. We have also a similar rating of pilots and cabin crew members.

"We are interested. If Citilink's shareholders welcome our offer, we will thank God. But if not, it is no problem," Dendy said, adding that both LCCs operate Airbus aircraft.

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