Capital A, Garuda Indonesia Ink MOU On Airline, Cargo And MRO Services

Capital A, and Garuda Indonesia Group – have announced a strategic partnership that explores areas across various business lines, including commercial airline services between AirAsia and Citilink, logistics services with Teleport and Garuda Indonesia Cargo, as well as Maintenance Repair and Overhaul (MRO) services with Asia Digital Engineering (ADE), owned by Capital A, and Garuda Indonesia Group’s subsidiary, GMF AeroAsia.

The partnership is an interlining MOU between AirAsia and Citilink, signed by AirAsia Group CEO Bo Lingam and Citilink CEO Dewa Kadek Rai, poised to provide travellers with access to a multitude of underserved third and fourth-tier cities in Indonesia. The partnership will leverage on the depth of close to 50 domestic destinations in Indonesia covered by Citilink with the breadth of AirAsia’s ASEAN 150 international destinations. Initial launch of selected routes by Q1 2024 will provide seamless transfer experience for both inbound and outbound travellers, with checked-through baggage service and issuance of boarding passes from point of origin.

Capital A’s logistics venture, Teleport CEO Pete Chareonwongsak signed a partnership agreement with Garuda Indonesia Cargo, represented by Vice President Cargo Commercial of Garuda Indonesia, Denny Perdana Wirawan. The agreement combines both parties’ air logistics network, which enables both companies to move goods across Teleport’s network of 160 destinations across Asia Pacific and Garuda’s connectivity of more than 90 destinations worldwide more seamlessly, under a single airway bill. Teleport will leverage Garuda’s strong domestic connectivity as well as added skidded capacity into high-demand sectors, such as Singapore, Shenzhen and Hong Kong bound flights. While Garuda will tap into Teleport’s strong network connectivity across Southeast Asia and Greater China network with extended connectivity into key Asia Pacific cities such as Taipei, Sydney, Auckland and Delhi, among others. 

Discussions are also underway between Capital A’s aircraft maintenance provider Asia Digital Engineering and Garuda Indonesia’s GMF AeroAsia to further explore opportunities for another strategic partnership that will leverage on mutual strengths and efficiencies as well as Asean’s strategic location to deliver greater value-driven, low-cost MRO services to third-party airlines seeking maintenance support.

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