Indonesian flag carrier Garuda Indonesia has signed an agreement with local cargo carrier Cardig Air to coordinate on cargo shipping throughout the region.

During the initial stage of cooperation that will take effect in July, Garuda will have the rights to sell freight space aboard Cardig Air flights that serve routes to Surabaya, East Java, Denpasar, Bali, and Dili in Timor Leste.

Meanwhile, Cardig Air will have the rights to market Garuda’s cargo space on 76 domestic and international routes.

According to Garuda CEO Arif Wibowo, the partnership is expected to contribute US$10 million in projected cargo revenues. Wibowo said: “In the future we will continue to cooperate with Air Cardig on developing cargo shipments to other international routes that are currently not served by Garuda Indonesia Cargo.”

Garuda has already begun to move strongly into cargo with its imminent signing to the SkyTeam Cargo Alliance.

Cardig Air CEO Boyke Subroto said: “This collaboration will provide many benefits and convenience to us, given the Garuda Indonesia has a fairly extensive flight network, a huge market, and Cargo Service Center (CSC), located in 76 domestic cities that can support the future development of Air Cardig.”