Flag carrier Garuda Indonesia and Vietnam Airlines have signed a memorandum of understanding to strengthen cooperation among them, including on services, MRO (maintenance, repair and overhaul) and cargo.

The two airlines have also agreed to expand flight routes, such as Hanoi – Ho Chi Minh, Hanoi/Ho Chi Minh – Singapore, Singapore – Jakarta/Bali and Jakarta – Bali/Java. “Expanded partnership between the two airlines is expected to strengthen cooperation and contribution to develop the Skyteam Alliance,” Garuda Indonesia CEO Pahala N. Mansury said in a written statement received by Tempo on Wednesday (23/8).

Pahala said that Vietnam is a valuable market to Indonesia. He said that the company will offer more choices of travel between Indonesia and Vietnam. “At the same time, the agreement is expected to boost trade and tourism and offer easier access to Indonesia for Vietnamese tourists,” he said.

Vietnam Airlines CEO Duong Tri Thanhm said that Vietnam Airlines and Garuda Indonesia have established cooperation since 2006.

According to the Centre for Asia-Pacific Aviation, Southeast Asia grows faster compared to the average global regions. Six out of 10 Southeast Asian nations saw a significant passenger growth, led by Vietnam and Myanmar. The trend is expected to continue throughout this year.

Pahala predicts that Indonesia’s need for air transportation will continue to grow in line with economic growth. The Central Statistics Agency (BPS) reports that the number of international passengers in Indonesia increased by 8.16 percent from 13.66 million passengers in 2015 to 14.77 million in 2016. Pahala said that the increase was attributable to stronger economic activities and the growing number of the middle class people.(tempo.co)