SINGAPORE Airlines is poised to take over the running of troubled Indonesian carrier Garuda.
Next year, SIA is expected to replace or work alongside Lufthansa Consulting, the management arm of Lufthansa, after German executives brought Garuda back into profit.
Garuda has been using the external expertise of Lufthansa Consulting to help run its business following a downturn in fortunes due to the Asian economic crisis and Indonesia’s political problems. The co-operation has already paid dividends as Garuda is beginning to make a small profit after years of losses.
SIA will focus on helping the airline move into profitability on long-haul routes and in the highly competitive Asian sector, and will also look for efficiencies across the board.
Reports from Jakarta indicate the Indonesian government, Garuda’s owner, has held initial talks with SIA on taking over operations.
Full details of SIA’s involvement are due to be revealed in the new year. The carrier refused to confirm a role with Garuda, despite statements made by the Indonesian government.
SIA is set to join the Star Alliance in March, while Lufthansa is one of the founder members.