Garuda Indonesia, through its Citilink subsidiary, is taking over operational control of rival Sriwijaya Group, giving it a majority share of the domestic aviation market, according to a Reuters report.
As part of the agreement, Garuda aims to improve the operational and financial performance of Sriwijaya Air Group. This will include helping Sriwijaya meet its financial commitments to Garuda Group, the latter said in a statement without disclosing details of the financial obligations.
The partnership could also be expanded to share ownership in Sriwijaya Group.
A change in management at Sriwijaya is also expected to come with the takeover.
The national carrier has been battling for market share against Lion Air, a top airline in the country that was set back last month by the crash of one of its Boeing 737 Max jet, which killed all 189 people on board.
