Citilink Indonesia: No plan yet to set up entity in Malaysia

KUALA LUMPUR: Citilink Indonesia, a subsidiary of Garuda Indonesia, says it has no plan yet to establish a business entity in Malaysia.

While dismissing reports linking the company 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 a partnership with local Malaysian General Sales Agent (GSA), the management would like to deny the misleading information,” it said yesterday.

On April 14, it was reported that SM-Track Bhd had signed a memorandum of understanding with Dexma Express Sdn Bhd, the official GSA of Citilink, for a potential investment in Citilink Malaysia operation.

SM-Track was buying a 60 per cent stake in Citilink Malaysia for RM3.5 million, according to the report.

The report quoted SM-Track’s 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 had any plans to establish a business entity in Malaysia. “For the time being, we conduct our operations in Malaysia under a cooperation with a local GSA for ticket sales.”

Jakarta-based Citilink was established in 2001 to operate shuttle services between Indonesian cities.