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The Jakarta Post
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GMF seals $60m deal with 4 African airlines

  • The Jakarta Post

| Wed, February 6 2013 | 09:19 am

PT GMF AeroAsia, a subsidiary of national flag carrier Garuda Indonesia, has secured a US$60 million deal to maintain and repair the aircraft of four African airlines.

The airlines, which will use GMF‘s facilities in Cengkareng, Banten, were identified as HAK Air, a Nigerian airline that has purchased several older aircraft from Garuda Indonesia; Kabo Air, a Kano, Nigeria-based international charter and haj flight airline; Max Air, a Lagos-based charter airline; and Service Air.

A memorandum of understanding (MoU) for the deal was signed by GMF president director Richard Budihadianto and the airline chiefs in Abuja, Nigeria, and was witnessed by Trade Minister Gita Wirjawan, Garuda Indonesia president director Emirsyah Satar, Indonesian Investment Coordinating Board (BKPM) chairman M. Chatib Basri and other senior Indonesian officials.

“We are going to maintain and repair their Boeing B747 and B737 series starting this year,” Richard said in a statement made available on Tuesday.

“This deal also increases our reputation as a global player in the MRO [maintenance, repair and overhaul] business because we are now able to expand our service to the African market,” Richard said according to the statement.

GMF, whose customers include carriers based in Southeast Asia, Eastern Europe and the Middle East, also inked a deals with several Nigerian companies to build MRO facilities in Nigeria.

He said that the new facilities would focus on frame maintenance, component maintenance and engineering support. Emirsyah said that he was proud that Garuda Indonesia’s subsidiary had become an international-class company that could enter the African market.

“This expansion is in line with Garuda’s Quantum Leap 2011 to 2015 program. GMF AeroAsia is on the right path to become a global player. As the parent company, Garuda fully supports all of GMF’s expansion into the international arena,” Emirsyah said.

The firm recently began work on a $50 million project to build a fourth hangar to meet growing demand from domestic and international carriers. The hangar, under construction on a 64,000-square-meter plot, will be able to house up to 16 aircraft when complete.

GMF plans to build four more hangars — in Cengkareng, Banten; Medan, North Sumatra; Makassar, South Sulawesi; and Biak, Papua — over the next five years.

The additional hangars will boost GMF handling capacity to 200 aircraft a year, up from a current 100 planes.

The firm previously said it wanted to book a 20 percent bump in revenue to $260 million this year.

—JP/ Nurfika Osman


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