Garuda Indonesia LCC subsidiary Citilink will focus on domestic expansion & profitability in 2015

Garuda Indonesia budget subsidiary Citilink has further delayed the launch of scheduled international services as it focuses on its goal of achieving its first annual profit in 2015. Citilink will instead pursue less risky domestic expansion in 2015 and has begun operating seasonal international charters during periods of weak domestic demand.

Citilink has been the fastest expanding airline in Indonesia over the past four years as it has pursued strategic growth in an attempt to close the gap with rival Lion. Citilink accounted for about 14% of passenger traffic among Indonesian LCCs in 2015 compared to less than 4% in 2010.

But Citilink's rate of expansion is slowing as it starts to focus more on profitability. Citilink was in the black for the first time in 2H2014 and is confident it can be profitable for the full year in CY2015.