Advertising
  • News
  • Airlines
  • Business strategy
  • Citilink management deal in limbo as Sriwijaya sacks executives

Citilink management deal in limbo as Sriwijaya sacks executives

Sriwijaya Air's board of commissioners has sacked three senior executives seconded from Citilink in a sign that the management agreement between the airlines may be in trouble.

In a letter seen by Cirium, Sriwijaya sacked president director Joseph Saul, human capital and service dirctor Harkandri Dahler, and commercial director Joseph Tendean from their positions. The carrier did not explain why it sacked the three executives.

Anthony Tampubolon has been appointed in the interim in all three roles, assisted by Robert Waloni, and Rifai.

Citilink responded with its own letter to Sriwijaya's shareholders, signed by its president director Juliandra, on 9 September.

In it, he stresses that Citilink has the right to appoint managers at Sriwijaya and its subsidiaries, and that its shareholders "should coordinate with Citilink before taking any action related to Sriwijaya's management", including sacking Saul.

Juliandra adds that Citilink has called a meeting with Sriwijaya for 11 September to clarify the situation. Representatives from Sriwijaya's major creditors, Bank Negara Indonesia, state-owned oil company Pertamina and GMF AeroAsia will also attend.

Cirium sought comment from Citilink, its parent company Garuda Indonesia, and Sriwijaya, but none of the three airlines responded.

Citilink has been managing operations and finances of Sriwijaya Air and its sister carrier Nam Air since November 2018 under a deal with Sriwijaya Air Group aimed at averting a potential collapse of the airline following a deep loss in 2017.

Garuda chief executive Ari Askhara explained at the time that the arrangement would "improve its operational performance and financial performance, including helping Sriwijaya to fulfill its commitments or obligations to third parties, including those within the Garuda Indonesia group."

Advertising
Related Content
Advertising
What's Happening Around "Sriwijaya Air"