Garuda to take over Tigerair Mandala

"That is right. We intend to take over Tigerair to strengthen Citlilink`s future development," Citilink President Director M Arif Wibowo confirmed.
Jakarta (ANTARA News) - PT Garuda Indonesia Tbk., through its subsidiary Citilink, will take over Tigerair Mandala to strengthen its regional network.

"That is right. We intend to take over Tigerair to strengthen Citlilinks future development," Citilink President Director M Arif Wibowo confirmed, when asked by ANTARA about the news, here on Tuesday.

He stated that he had indeed offered a bid to Tigerair and the latter had responded.

"We will study it immediately," he asserted, adding that the two companies have even signed a non-disclosure agreement.

Arif declined to reveal whether Citlink would acquire it or take Tigerair Mandala as its strategic partner cooperate, nor about the funds needed for the acquisition.

"We cannot as yet mention it. What is clear is we must first conduct a due diligence," he pointed out.

He added that the plan to acquire or to partner with Tigerair has been fully supported by PT Garuda Indonesia Tbk.

"The essence is that it has been fully supported by the holding company so long as it would not harm Citilink," he confirmed.

A source at Tigerair Mandala disclosed that besides Citilink there are other companies that maybe interested in Tigerair namely AirAsia or Indonesia AirAsia.

AirAsia has even conducted a due diligence on Tigerair Mandala and has also signed a non-disclosure agreement a mere nine days ago.

"The question is what AirAsia or Citilink would benefit from taking over Mandala while their pattern of operation is the same. What is interesting is the slot and pilot," the source explained.

The source also emphasized that Tigerair Mandalas cash flow in the past one or two months was negative and as part of efficiency measures it has operated only four to five planes as against the earlier nine flights.

Mandala Airlines was established in 1969. Due to financial problems in 2006, the company sold its shares to Cardig International (51 percent) and Indigo Partners (49 percent).

The company later had a problem with a leasing company that defaulted with its rent.

Mandala then stopped its operation in January 2011. Saratoga Group and Tiger Airways took over and in April 2012, it resumed operation.(*)

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