Capital A inks partnership deal with Garuda Indonesia Group

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Capital A, the holding company of AirAsia, has joined hands with Garuda Indonesia Group, the national flag carrier of Indonesia, as part of a strategic partnership to support the strengthening of the global aviation ecosystem post-pandemic.

The partnership between these two entities explores the network expansion across various business lines, including commercial airline services between AirAsia and Citilink and logistics services with Teleport and Garuda Indonesia Cargo.

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Capital A’s CEO Tony Fernandes said, “We are witnessing the blossoming of a meaningful partnership between two leading Asean brands that are loved by millions of people in this region, and known for the best value, quality and choice," he said.

"Our relationship with Garuda began when Citilink joined our Superapp journey. We are excited to further elevate this relationship by pooling our strengths and resources to add more value to people’s lives,” he continued.

President and CEO of Garuda Indonesia, Irfan Setiaputra, stated that this collaboration marks a significant milestone in the growing optimism within the aviation industry, which is progressing positively. “We believe that after the pandemic, collaboration within the aviation ecosystem is a necessity that should continue to be optimised," he said.

He added that with this commitment in mind, its collaboration with Capital A is expected not only to provide a solid foundation for the business outlook of both companies but also to strengthen its joint commitment to delivering added value in the best aviation services for the community.

Setiaputra explained that various initiatives undertaken by the Garuda Indonesia Group through collaborations with strategic partners, including Capital A, are a manifestation of the company's commitment to creating a more agile and adaptive aviation industry ecosystem. The cornerstone of this transformative partnership according to Capital A, is an interlining MOU between AirAsia and Citilink, poised to provide travellers with unparalleled access to a multitude of underserved third and fourth-tier cities in Indonesia. This marks the very first interlining for the AirAsia Aviation Group.

The partnership will leverage 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 the first quarter of2024 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.

AirAsia group CEO, Bo Lingam, said, “We are thrilled about the start of this new journey for AirAsia, something I have believed is important for our next phase of growth, and we have the most ideal partner in Citilink, whose strong domestic connectivity and our international routes create a powerful synergy.”

Capital A recently launched a new entity dedicated to further enhancing the reach and impact of its AirAsia brand worldwide and has appointed a new CEO to lead it and drive brand growth globally. Titled airasia brand co. (abc.), the entity focuses on the primary areas of development, including strategic brand licensing, brand collaboration and merchandising opportunities in the travel-related and lifestyle sectors, as well as content creation which will allow the brand to amplify exposure, reach wider audiences and add tremendous value to the AirAsia ecosystem.

Rudy Khaw, who has been at AirAsia for 16 years since 2007, will lead the new initiative as CEO alongside Capital A CEO Tony Fernandes as chairman.

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