With emerging market economies slowing and low-cost carriers adding capacity at a rapid pace, the global aviation sector is at risk of overcapacity, warns Emirsyah Satar, president & CEO of Garuda Indonesia.
"I think what's going to happen is there's going to be a consolidation. You see it with airlines in Indonesia, some of them are already closing their routes – they will be consolidated. The market will react," Satar told CNBC on Monday.
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The Indonesian flag carrier is continuing with plans to expand its fleet despite posting a net loss of $22 million for the January-September period that was driven by high operating costs as a result of the rupiah's decline.