Imagine if the French government decided to combine Air France, Aéroports de Paris, the Campanile hotel chain and SETE, which manages the Eiffel Tower, into a single holding company. This would be an economic aberration and, of course, the creation of a monopoly.
This is exactly what the Indonesian government is doing. Earlier this week, the President of the Republic announced his intention to merge the Garuda Indonesia and Citilink low-cost airlines, the Angkasa Pura I and Angkasa Pura II airport companies and the Natour hotel chain. The two Angkasa Pura companies manage around thirty airports in the country, while Natour has a portfolio of around fifteen establishments.
This "inventory à la Prévert" also includes the listed site of Borobudur and the Sarinah department stores' in Jakarta.
A holding company to save Garuda Indonesia
The government plans to inject 578.5 million financial aid in the future holding company. But for observers, such a structure would in fact make it possible to rescue the national airline. Garuda Indonesia. Indonesia's national airline is in the red. From January to June, it made a net loss of 723.26 million dollars.
There is, however, a real ethical problem for this new holding company. Merging with the airports, for example, would give Garuda Indonesia a major advantage over competition. From the allocation of space in airport terminals to ground handling contracts and slots, the Indonesian carrier would probably benefit from a a certain "benevolence.
For the passengersThe merger of airlines and airport companies could result in the creation of new jobs. price increases. This would affect ticket prices as well as fees and taxes. A rescue operation that does not seem to be benefiting passengers...
