INDONESIAN flag carrier Garuda Indonesia is planning to replace the head of its low cost unit, Citilink Indonesia, in an effort to boost profitability and recover from the fallout of the pandemic and subsequent debt restructuring.
Darsito Hendro Seputro, a former executive at Thai Lion Air, is a leading candidate for the role, according to people familiar with the matter, who asked not to be identified because they’re not authorised to speak publicly. He would take over the position currently held by Dewa Kadek Rai, who has worked at Garuda since the early 1990s and was appointed Citilink chief executive officer in 2022.
The appointment is partly a move by Wamildan Tsani Panjaitan – the newly appointed CEO of Garuda Indonesia, who was previously acting CEO of Lion Air – to consolidate his power within the state-owned carrier, according to one of the people.
Two other Citilink executives may also be replaced, the person said, without providing further information. It’s unclear when the management changes may occur.
Representatives for Garuda and Citilink did not respond to requests for comment. A spokesperson for Thai Lion Air said that Seputro has left the carrier, and declined to elaborate. Seputro did not immediately respond to a message sent to his LinkedIn account.
Citilink is an important unit for Garuda, which is facing intensifying competition in its home market from rivals such as Lion Air and AirAsia Indonesia. The management changes also reflect the pressure Garuda, which has long struggled financially, faces from Indonesian President Prabowo Subianto to boost profitability by adding more international flights through an expanded fleet.
Despite the almost US$10 billion debt restructuring in 2022 that saw its fleet shrink from about 210 aircraft to around 70, Garuda has consistently struggled to revive its finances. It reported a net loss of US$29.6 million for the three month ended September, its third straight quarterly deficit. BLOOMBERG
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