The Indonesian government is reviewing a plan to merge state-owned airlines PT. Garuda Indonesia (Persero) Tbk (IDX:GIAA) and PT. Pelita Air Service to ensure affordable airfares, an executive said on August 22, 2023.

The plan came a year after Garuda reached an agreement with its creditors to restructure its $9 billion debt. Pelita Air president director Dendy Kurniawan told Reuters that it welcomed the plan, which he said was under the review of Indonesia's state-owned enterprises (SOE) ministry, adding the possible merger would "strengthen the aviation industry" and ensure affordable ticket prices. His statement came after local media cited SOE minister Erick Thohir as saying on August 22, 2023 that he planned to merge Pelita Air with Garuda group, which includes its low cost airline unit Citilink.

Erick said the merger will help reduce the country's logistic costs and increase the its fleet size, which he said needed 179 new planes.