The Indonesian carrier is seeking a partner in order to boost its expertise and overall network.
Qatar Airways is among three Middle Eastern airlines currently locked in talks with Garuda to establish a potential partnership, reported Bloomberg.
The other two Middle Eastern airlines involved in the preliminary discussions with Indonesia’s flag carrier are Emirates and Etihad Airways.
Garuda is reportedly on the hunt for a partner who can provide knowledge and connectivity, according to Deputy State-Owned Enterprises Minister Kartika Wirjoatmodjo in an interview on Wednesday.
A rebound in air travel has reduced pressure on the airline to raise money, allowing it to take its time, he said, according to Bloomberg.
Garuda has largely maintained its state capital infusion and should generate $150 million in free cash flow this year, he said. As of 11:13 a.m. in Jakarta, the airline’s shares increased 9.3% to 106 rupiah, marking the largest gain in two years.
Hajj pilgrimage flights, already among the most successful operations for the Indonesian airline Garuda, would be strengthened by a deal between the carrier and a Middle Eastern airline.
While the airline prioritises domestic travel, Garuda has been looking for foreign partners to help revive its international reach, particularly to markets like Europe.
It’s currently in talks with potential investors to raise $300 million to $400 million via a private placement, State-Owned Enterprises Minister Erick Thohir said earlier this month, reported Bloomberg.