Contributor - Asia

Jennifer Meszaros

Concerns about unfair business competition practices have prompted three Indonesian airline executives—two from Garuda Indonesia and one from Garuda low-fare subsidiary&nbsp;Citilink—to resign from the board of commissioners at Citilink-controlled&nbsp;Sriwijaya Air as the nation’s antitrust watchdog continue its investigation into a possible air ticketing cartel. The announcement marks another blow for flag carrier Garuda Indonesia, which has come under scrutiny in recent months over allegations of price fixing and financial regularities.

 


According to the Business Competition Supervisory Commission (KPPU), Garuda president director Ari Askhara, business director Pikri Ilham Kurniansyah, and&nbsp;Citilink president director Juliandra Nurtjahjo stepped down from their commissioner posts at Sriwijaya Air on Tuesday after authorities found that the trio held multiple positions across three airlines under Garuda group’s management. Garuda’s low-cost subsidiary&nbsp;Citilink assumed operational control of Sriwijaya Air last November under a joint operations agreement. &nbsp;

 


According to Indonesian law, board directors and commissioners may not hold positions in other companies engaged in similar markets and/or similar business interests as part of an effort to safeguard against monopolistic market practices.

 


Apart from serving as president director of state-owned Garuda Indonesia, Askhara held chief commissioner positions at both Citilink and Sriwijaya Air. The KPPU announced today that it will continue its investigation into Citilink president director Nurtjahjo.

 


In recent months, Garuda and its units have come under fire amid allegations of price fixing, prompting the KPPU to launch an investigation in February into a possible air ticketing cartel. In late May, Australia’s Federal Court ordered Garuda to pay $13.1 million in penalties for colluding on fees and surcharges for air freight services between 2003 and 2006; Garuda has repeatedly denied the accusations.

 


In a separate development, Indonesia’s Financial Services Authority ordered Garuda last Tuesday to resubmit its 2018 financial results within 14 days after finding the airline in breach of accounting regulations. The market regulator, known locally as OJK, has since ordered Garuda and each of its directors to pay approximately $7,000 in penalties.

News about commercial airlines, including regulations, aircraft orders, safety, acquisitions, and mergers.

Garuda Execs Drop Sriwijaya Board Seats amid Antitrust Probe

Indonesia’s antitrust watchdog is investigating charges of a ticketing cartel.

2024 Corporate Aviation Leadership Summit

Charles Alcock

News and developments about airplanes, helicopters and unmanned air vehicles used in all varieties of operations, including airlines, military, business, commercial, general aviation and private.

News about environmental issues relating to aircraft operations, including noise issues, emissisions, and regulations. See Fuel for biofuel.

News and issues relating to international air transport and cargo carriers, national airlines and regional airlines, including aircraft, engines, personnel, acquisitions, accidents, safety, security and training.

Agreement between start-ups could lead to orders for up to 15 aircraft

Skyhop Plans Island Routes With Noemi's Electric Seaplane

Howard Hardee

Airline plans to gradually replace its Embraer E-Jet fleet

A220’s Performance Drives BermudAir’s Fleet Growth

Partners say eVTOLs could accelerate response times in crowded Indian cities

Air India Backs SkyDrive Emergency Medical eVTOL Plans

News and issues relating to the aerospace industry that are related to the science, engineering and business of flight in space involving civil, industrial and military applications, and similar topics related to flight in the atmosphere of the Earth that are not covered more directly by other AINonline subject channels. In other words, both astronautical and aeronautical subjects, except for those aeronautical topics that are specifically covered elsewhere on this website.

Rival Boeing arguably claimed bragging rights at the Farnborough International show

Airbus Balances Shareholder Returns and New Aircraft

New developments at airports including regulations and noise issues; legal disputes; openings, acquisitions and mergers.

Connections to London Heathrow and Manchester airports will start first

Virgin Firms Up eVTOL Air Taxi Alliance with Joby

News and developments about everything that goes into the cabin of an aircraft, from floor coverings to headliners, with a special emphasis on in-flight entertainment, communications and other electronics for passengers. If it is in the cabin of an aircraft, it’s covered here.

More In Airlines

Skyhop Plans Island Routes With Noemi's Electric Seaplane

Agreement between start-ups could lead to orders for up to 15 aircraft

A220’s Performance Drives BermudAir’s Fleet Growth

Airline plans to gradually replace its Embraer E-Jet fleet

Air India Backs SkyDrive Emergency Medical eVTOL Plans

Partners say eVTOLs could accelerate response times in crowded Indian cities

Airbus Balances Shareholder Returns and New Aircraft

Rival Boeing arguably claimed bragging rights at the Farnborough International show

Virgin Firms Up eVTOL Air Taxi Alliance with Joby

Connections to London Heathrow and Manchester airports will start first

ATR Chases New Regional Markets for Twin Turboprops

Iran war and wider geopolitical pressure stall buying decisions

Embraer Racks Up E-Jet Orders at Farnborough

30 firm orders led by Abra

Gulf Air May Buy JetZero’s Blended-wing-body Z4

Japan Airlines also expresses interest at Farnborough Airshow

AIN Products

SUBSCRIPTIONS

RESOURCES

ABOUT AIN