PT. Garuda Indonesia (Persero) Tbk (GIAA.JK)

Indonesia reviews plan to merge two state airlines - executive

The Indonesian government is reviewing a plan to merge state-owned airlines Garuda Indonesia and Pelita Air, a unit of energy firm Pertamina, to ensure affordable airfares, an executive said on Tuesday. Pelita Air president director Dendy Kurniawan told Reuters that it welcomed the plan, which he said was under the review of Indonesia's state-owned enterprises (SOE) ministry, adding the possible merger would "strengthen the aviation industry" and ensure affordable ticket prices. His statement came after local media cited SOE minister Erick Thohir as saying on Tuesday that he planned to merge Pelita Air with Garuda group, which includes its low cost airline unit Citilink.