KUALA LUMPUR: Garuda Indonesia's subsidiary Citilink Indonesia says it has no plan yet to establish a business entity in Malaysia.
Dismissing reports linking it with such plans as “misleading”, Citilink however said it was continuously growing and expanding its business in Indonesia and other regional countries.
“In respond to the news regarding Citilink Indonesia establishing an entity in Malaysia through partnership with local Malaysian General Sales Agent (GSA), the management would like to deny the misleading information.
“As a member of Indonesian Flag Carrier Garuda Indonesia, Citilink Indonesia has no plan yet to establish a business entity in Malaysia, whether in a short or long term. Hereby, Citilink Indonesia strongly denies the publication of such misleading information,” it said today.
On April 14, it was reported that SMTrack Bhd had signed a memorandum of understanding with Dexma Express Sdn Bhd, the official GSA of Citilink, for a potential investment in the upcoming Citilink Malaysia operation.
SMTrack was buying a 60 per cent stake in Citilink Malaysia for RM3.5 million, the report added.
The report quoted SMTrack representative Jay Hoo Ying Wah as saying that Dexma would change its name to Citilink Aviation Malaysia Sdn Bhd and obtain air operator certificate and other licences or permits required.
Citilink corporate secretary vice president Resty Kusandarina said it had not yet set up any future plan in establishing business entity in Malaysia.
“For the time being, we conduct our operational in Malaysia under a cooperation with a local GSA for ticket sales,” Restry added.
Jakarta-based Citilink was established in 2001 as a low-cost brand of Garuda Indonesia, set up to operate shuttle services between Indonesian cities.
Since July 30, 2012, Citilink has officially operated as a separate subsidiary of the Indonesian national carrier.
Citilink's fleet size currently stands at just over 50 aircraft.