Jakarta: Management Cooperation between two national airlines, Garuda Indonesia Group and Sriwijaya Air Group has been once again stopped.
In a letter obtained by Medcom.id on Thursday, 7 November 2019, Garuda Indonesia Group informed the Sriwijaya Air Group that it decided to stop their management cooperation.
The letter was signed by Garuda Indonesia Maintenance & Service Director Iwan Joeniarto.
"Because of several circumstances and some issues that have not been resolved by both parties, we regret to inform you that Sriwijaya should continue its business singlehandedly," it stated.
According to the letter, Sriwijaya Group will no longer be a member of the Garuda Indonesia Group. Nevertheless, the relationship between Garuda Indonesia Group and Sriwijaya Group will continue on a business-to-business basis.
Garuda Indonesia Group and Sriwijaya Air Group previously agreed to continue management cooperation that had been interrupted due to a dispute between the two companies.
According to reports, Sriwijaya Air Group still owes around Rp800 billion to Garuda Indonesia's subsidiary, Garuda Maintenance Facility Aeroasia (GMF). In September, GMF stopped providing maintenance on Sriwijaya aircraft.
As a result, half of the aircraft owned by Sriwijaya Air Group did not meet safety requirements given the limited number of mechanics, technicians and spare parts. Of the 30 aircraft, only 12 aircraft were allowed to fly.