The airlines signed a memorandum of understanding that establishes a framework for negotiating a future joint business agreement. The proposed arrangement would deepen their existing codeshare relationship and could allow closer coordination across schedules, sales, network planning and passenger services.
The partnership is expected to explore single-ticket journeys across the two carriers’ combined networks. Garuda Indonesia passengers could gain easier access to Saudia-operated destinations in the Middle East, Europe and Africa, while Saudia customers could connect through Garuda’s domestic network and services to Australia.
The carriers will examine coordinating flight schedules between Saudi Arabia and Indonesia to improve connection times and reduce lengthy transfers. They will also assess joint sales, marketing and distribution initiatives in markets where both airlines see opportunities for traffic growth.
Cooperation could extend to frequent-flyer programmes, airport services, technology systems and customer handling. The memorandum also places particular emphasis on services for Umrah and Hajj passengers travelling from Indonesia, one of the world’s largest markets for pilgrimage-related air travel.
Saudia Chief Commercial Officer Arved von zur Muehlen and Garuda Indonesia Director of Transformation Neil Raymond Mills signed the agreement. The ceremony was attended by Saudia Group Director General Ibrahim Al-Omar and Garuda Indonesia Vice President Director Thomas Sugiarto Oentoro.
Von zur Muehlen said the agreement reflected Saudia’s strategy of building commercial partnerships that strengthen its international network. He said the proposed cooperation would offer passengers greater flexibility between Indonesia, Australia and destinations served by Saudia across three regions.
Mills said the partnership carried strategic value beyond expanding flight networks. Improved access to the Middle East, Europe and Africa would support pilgrimage travel, family and community movement, business links and wider economic cooperation.
A joint business agreement would represent a deeper form of cooperation than a conventional codeshare. Codeshares allow airlines to sell seats on flights operated by a partner, while joint business structures can involve coordinated scheduling, pricing, sales and capacity planning, subject to regulatory approval.
Such arrangements allow airlines to extend their market reach without immediately adding aircraft or launching a large number of new routes. They can also improve aircraft utilisation and feed passenger traffic through major hubs. Regulators, however, generally examine these partnerships to ensure that closer coordination does not weaken competition or limit consumer choice.
The proposed partnership builds on the airlines’ membership of the SkyTeam alliance. Saudia joined SkyTeam in 2012, while Garuda Indonesia became a member in 2014. Alliance membership already supports shared passenger benefits, lounge access, priority services and frequent-flyer recognition across participating carriers.
Saudia operates from hubs including Jeddah, Riyadh, Dammam and Medina, connecting Saudi Arabia with destinations across Asia, Africa, Europe and North America. Its Jeddah hub is particularly important for religious travel because of its proximity to Makkah and its role as a gateway for pilgrims.
Garuda Indonesia’s network is centred on Jakarta and Bali, with domestic services covering major commercial centres and tourism destinations across the archipelago. Its international operations connect Indonesia with markets in Asia, the Middle East and Australia.
The agreement comes as Garuda expands commercial cooperation with overseas airlines during its continuing operational and financial restructuring. The carrier launched a codeshare partnership with Scandinavian Airlines in June, offering connections between Indonesia and Copenhagen, Stockholm and Oslo through hubs including Amsterdam and Tokyo.
Greater cooperation with Saudia could strengthen Garuda’s access to markets that are difficult to serve economically with direct flights. The arrangement could also help generate connecting traffic for domestic destinations beyond Jakarta, including cities that supply significant numbers of Umrah and Hajj travellers.
Indonesia and Saudi Arabia have sought to expand economic and transport ties alongside their strong religious and cultural links. Agreements between companies from the two countries valued at about $27 billion were announced in 2025 across sectors including clean energy, petrochemicals and aviation fuel services.
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