Concerns about unfair business competition practices have prompted three Indonesian airline executives—two from Garuda Indonesia and one from Garuda low-fare subsidiary Citilink—to resign from the board of commissioners at Citilink-controlled Sriwijaya Air as the nation’s antitrust watchdog continue its investigation into a possible air ticketing cartel. The announcement marks another blow for flag carrier Garuda Indonesia, which has come under scrutiny in recent months over allegations of price fixing and financial regularities.

According to the Business Competition Supervisory Commission (KPPU), Garuda president director Ari Askhara, business director Pikri Ilham Kurniansyah, and Citilink president director Juliandra Nurtjahjo stepped down from their commissioner posts at Sriwijaya Air on Tuesday after authorities found that the trio held multiple positions across three airlines under Garuda group’s management. Garuda’s low-cost subsidiary Citilink assumed operational control of Sriwijaya Air last November under a joint operations agreement.  

According to Indonesian law, board directors and commissioners may not hold positions in other companies engaged in similar markets and/or similar business interests as part of an effort to safeguard against monopolistic market practices.

Apart from serving as president director of state-owned Garuda Indonesia, Askhara held chief commissioner positions at both Citilink and Sriwijaya Air. The KPPU announced today that it will continue its investigation into Citilink president director Nurtjahjo.

In recent months, Garuda and its units have come under fire amid allegations of price fixing, prompting the KPPU to launch an investigation in February into a possible air ticketing cartel. In late May, Australia’s Federal Court ordered Garuda to pay $13.1 million in penalties for colluding on fees and surcharges for air freight services between 2003 and 2006; Garuda has repeatedly denied the accusations.

In a separate development, Indonesia’s Financial Services Authority ordered Garuda last Tuesday to resubmit its 2018 financial results within 14 days after finding the airline in breach of accounting regulations. The market regulator, known locally as OJK, has since ordered Garuda and each of its directors to pay approximately $7,000 in penalties.