Capital A's logistics venture, Teleport, has signed a partnership agreement with Garuda Indonesia Cargo.

In the announcement, Capital A said the agreement combines both parties' air logistics network, which enables both companies to move goods across Teleport's network of 160 destinations across the Asia Pacific and Garuda's connectivity of more than 90 destinations worldwide more seamlessly, under a single airway bill.

Teleport will leverage Garuda's strong domestic connectivity as well as inject added skidded capacity into high-demand sectors, such as Singapore, Shenzhen and Hong Kong-bound flights.

Garuda will tap into Teleport's strong network connectivity across Southeast Asia and the Greater China network with extended connectivity into key Asia Pacific cities such as Taipei, Sydney, Auckland and Delhi, among others.

The announcement said discussions are also underway between Capital A's aircraft maintenance provider, Asia Digital Engineering (ADE), and Garuda Indonesia’s GMF AeroAsia to further explore opportunities for another strategic partnership.

“We strongly believe that a partnership between ADE and GMF AeroAsia will be a game changer in the MRO landscape, not only within the ASEAN region but beyond. With ADE's cutting-edge technology coupled with GMF AeroAsia's decades of industry expertise, we can unlock an unprecedented advantage that will elevate the industry to new heights."

"It reaffirms our unwavering commitment to delivering unmatched excellence and nurturing innovation in aircraft maintenance. The sky is no longer our limit; it is a canvas for creating a brighter, more efficient future."

Andi Fahrurrozi, CEO of GMF, said collaborating with ADE is a strategic step that will strengthen GMF's position in the Southeast Asian market.

"The merging of strengths between GMF and ADE will enhance the competitiveness of Southeast Asian MRO in the global market, emphasising integrated services with competitive pricing. We aim to seize the opportunities to support sustainable, profitable growth," he added.

Meanwhile, Capital A also signed a wide-ranging partnership with Garuda Indonesia Group aimed to boost the global aviation ecosystem post-pandemic.

The Malaysian multi-national airline group and the national flag carrier of Indonesia said the partnership will explore the network expansion across various business lines, including commercial airline services between AirAsia and Citilink, logistics services with Teleport and Garuda Indonesia Cargo, as well as Maintenance Repair and Overhaul (MRO) services with Asia Digital Engineering (ADE), owned by Capital A, and Garuda Indonesia Group's subsidiary, GMF AeroAsia.

Capital A CEO Tony Fernandes said the relationship with Garuda started when Citilink joined the company's Superapp.

"We are excited to further elevate this relationship by pooling our strengths and resources to add more value to people's lives," Fernandes said.

Irfan Setiaputra, president and CEO of Garuda Indonesia, said the collaboration marks a "significant milestone" in the growing optimism within the aviation industry, which is progressing positively.

"We believe that after the pandemic, collaboration within the aviation ecosystem is a necessity that should continue to be optimised. With this commitment in mind, our collaboration with Capital A is expected not only to provide a solid foundation for the business outlook of both companies but also to strengthen our joint commitment to delivering added value in the best aviation services for the community," Irfan said.

Interline deal between AirAsia, Citilink

The announcement noted that the cornerstone of the "transformative partnership" is an interlining MOU between AirAsia and Citilink, signed by AirAsia Group CEO Bo Lingam and Citilink CEO Dewa Kadek Rai.

This marks the very first interlining for the AirAsia Aviation Group Limited.

The partnership will leverage the depth of close to 50 domestic destinations in Indonesia covered by Citilink with the breadth of AirAsia's ASEAN 150 international destinations.

The announcement said the initial launch of selected routes by Q1 2024 will provide a seamless transfer experience for both inbound and outbound travellers, with checked-through baggage service and issuance of boarding passes from the point of origin.