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Garuda Maintenance Facility cuts loss, looks to defense industry
PT Garuda Maintenance Facility Aero Asia (GMF) has significantly slashed its net loss in the pandemic-hit aviation market and seeks to tap into the defense industry.
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Staff of publicly listed PT Garuda Maintenance Facility Aero Asia work on an aircraft. (Garuda Maintenance Facility Aero Asia/Garuda Maintenance Facility Aero Asia)
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T Garuda Maintenance Facility Aero Asia (GMF) has significantly slashed its net loss despite the continued hardship in the pandemic-ravaged aviation industry.
The publicly listed company, which serves more than 190 customers from dozens of countries, cut its net loss by 75 percent year-on-year (yoy) to US$38.94 million in the January-to-September period.
The company reported Friday that it had reduced operating expenses, worked on its cash flow, pursued efficiency initiatives and restructured funding facilities, leading to a 94.9 percent improvement in earnings before interest, tax, depreciation and amortization (EBITDA) over the period.
While the company’s core business remained under pressure, GMF recorded growth in demand for airframe maintenance, particularly for end-of-lease-related projects. The company said it had won three new cargo airline customers.
“We are also exploring potential cooperation with partners and developing capabilities in an effort to diversify our business and anticipate a rise of [demand in] the aviation industry,” GMF president director Andi Fahrurrozi was quoted in a press release as saying on Friday.
The Delta wave of the coronavirus hit Indonesia in summer 2021, prompting the government to impose travel restrictions and thereby piling pressure on the aviation industry that has been in a slump early 2020.
Flag carrier PT Garuda Indonesia, which retains a controlling stake in GMF, saw its scheduled passenger flight income drop 48 percent to US$99.8 million in the third quarter from the previous quarter.
