Garuda plans to spin off cargo business division

After low cost carrier Citilink Indonesia, national flag carrier Garuda Indonesia will spin off its cargo division next year into an independent business to better tap into the country’s growing cargo business.

Cargo Garuda Indonesia vice president Rajendra Kartawiria said in Jakarta on Wednesday that the national flag carrier would set up a new subsidiary, PT Garuda Indonesia Cargo, to handle its cargo business.

The airline separated its low-cost flight services into a separate company named PT Citilink Indonesia in July to enable it to better compete with growing budget flight services in the country.

 “We see a lot of opportunity to grow in cargo sector and we will also collaborate with domestic and global forwarders to expand our business,” Rajendra told The Jakarta Post.