Indonesia national airline Garuda has confirmed it will set up an independent cargo company.
However, a spokesperson told JOC that the details of the initiative, originally scheduled for launch in January, were still not fully finalized.
Previous statements from Garuda executives have hinted that its freight business would be separated into a new subsidiary called PT Garuda Indonesia Cargo to enable better cooperation with forwarders in domestic and international markets.
Indonesia’s air cargo volumes are estimated to currently being running at over 900,000 tons per annum and growing rapidly. Garuda controls more than a fifth of the market, and its cargo business turned a profit in 2012 after posting consistent losses in preceding years.
The company has recently expanded its cargo facilities at Jakarta’s Soekarno-Hatta International Airport and also operates a series of 20 cargo centers across the archipelago.