Garuda Indonesia (GA, Jakarta Soekarno-Hatta) CEO Emirsyah Satar has confirmed reports in the local media that his airline has decided to postpone the sale of a stake in its Citilink (QG, Jakarta Soekarno-Hatta) subsidiary after bids submitted were deemed too low.
In July, the Indonesian national carrier announced it was in talks with two potential strategic investors interested in taking a 45% stake in its low-cost carrier Citilink. Speculative reports in mid-2013 had claimed Ryanair (FR, Dublin International) and ANA - All Nippon Airways (NH, Tokyo Haneda) were among the interested parties though this has never been officially confirmed.
Securing a viable strategic partner is seen as critical to Citilink's long term sustainability given the growth of rivals such as Lion Air (JT, Jakarta Soekarno-Hatta).
The country's airline industry is currently experiencing a difficult period as a weakening Indonesian Rupiah coupled with high oil prices continue to take their toll.
