1 Group 3 Tier: Indonesia's Aviation Strategy to Strengthen National Flight Services
Indonesia’s aviation sector has become the focus of national attention amid plans for a merger between Garuda Indonesia, Pelita Air, and Citilink. At this stage, consolidation in aviation is often perceived as an efficient shortcut. However, airline mergers are not always synonymous with strategic strengthening. What is frequently overlooked is how each airline’s role can be designed to complement one another rather than eliminate each other.
According to aviation practitioner Dian Ediono, merger in this context means that the identities of Garuda Indonesia, Citilink and Pelita Air would merge and lose their respective legal entities and business characteristics.
Every phase of crisis in the aviation industry always presents two choices: persisting with old structures or redesigning business foundations. Given the current role of airlines and public needs, Indonesia faces the second choice.
“Where airline integration is no longer a question of ‘whether needed or not’, but rather ‘what is the best form’,” he stated on Thursday (19/2/2026).
To that end, he questioned whether the “Merger” concept mentioned in the current decision is appropriate, or quite the opposite. What if there is another concept that could be applied to this issue and be mutually beneficial, not only for the three airlines but also for the national aviation sector?
“I want to describe the right concept that can be a solution for the national airline world, namely one Group that has 3 Tier National Airlines. This concept is depicted like a pyramid with the peak being Garuda Indonesia (Premium), then in the middle Pelita Air (Mid-Service), and at the base Citilink (LCC),” he said.
The transition from a 2-tier to a 3-tier system aims to close the gap currently exploited by foreign players, balance service on routes with efficient pricing and sustainable connectivity without depending on others.
This pyramid structure not only maximises service and sales targets, but also addresses internal cannibalism and ensures each customer receives the appropriate service according to their segmentation.
At the peak of the pyramid, Garuda Indonesia, as the national carrier, is well suited to be positioned as a premium airline with target customers including government, diplomats, state-owned enterprises, and premium corporate travellers. However, it should be noted that Garuda Indonesia must exit price wars and avoid cost-driven compromises by focusing on SkyTeam standards.
For the middle of the pyramid, Pelita Air, as The Value Bridge will act as the “mediator” between LCC and Premium by absorbing the lost demand currently dominated by foreign players. Pelita Air can target customers in the energy, mining, and construction sectors, or secondary middle-class travellers. With affordable yet premium service, Pelita Air is well suited for customers seeking medium-service flights at affordable prices.
At the base, Citilink, as The Value Engine. As a low-cost carrier under the Garuda Indonesia Group, primarily using Airbus A320 aircraft (both CEO and NEO types) for domestic and short-to-medium haul international flights.
“By offering more affordable prices, customers who prefer casual travel are well suited to workers or price-sensitive ticket customers,” he said.
From the above concept, questions will inevitably arise. “Does Indonesia’s airlines need to pay attention to service class according to prospective passengers?” The answer is very important.
The 1 Group 3 Tier airline concept is not merely a mutually beneficial strategy for the three airlines—Garuda Indonesia, Pelita Air, and Citilink—but also represents operational synergy and a defensive strategy against competitors.
From an operational perspective, this collaboration not only answers the question of how to overcome internal competition, but also provides more efficient and cost-effective solutions in facility maintenance management. Through MRO integration, centralised procurement, IT infrastructure, and pilot and crew training, the three airlines can mutually strengthen service quality—from fleet readiness to customer experience.
Meanwhile, in the context of defensive strategy, this synergy strengthens the position of national carriers as the primary choice for the public, whilst also limiting competitors’ room to monopolise the aviation market in Indonesia.
Thus, the 1 Group 3 Tier concept is a strategic step to navigate the complex Indonesian aviation industry landscape. Full support for the integration of different yet complementary entities is key to ensuring a stronger and more sustainable future for national aviation.
Currently, national carriers do not need a simplifying merger, but rather to expand the market to all passenger segments. With this 1 Group 3 Tier concept, in addition to strengthening national air services, expanding national capacity and maintaining the characteristics and diversity of each airline, the national aviation sector can continue to support the government’s broader agenda in creating inclusive and sustainable air connectivity going forward.
As is known, Dian Ediono is an aviation practitioner with more than 30 years of experience at Garuda Indonesia and has experience managing Garuda Indonesia’s SkyTeam when based in Amsterdam. He previously served as Vice President Director International Region of Garuda Indonesia.