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FL Technics to build new hangar to tap into Indonesia’s growing MRO business
Lithuania-based FL Technics reached a break-even point with total revenue of US$11 million year-to-date, five years after it began its MRO business in Indonesia in 2015.
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FL Technics Indonesia CEO Martynas Grigalavicius during a tour at the company’s hangar facility at Soekarno-Hatta International Airport in Tangerang on Tuesday. (The Jakarta Post/Istu Septania. )
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hen Lithuania-based Maintenance, Repair and Overhaul (MRO) company, FL Technics, stepped foot in Indonesia in 2015, it started its business by taking over former airline Batavia Air’s unused hangar in Tangerang, Banten.
Four years after transforming the unused hangar into a modern MRO facility, the company announced on Tuesday that it had reached break-even point with total revenue of US$11 million year-to-date.
With this success, the company has laid down a long-term business plan for the next 20 years.
FL Technics Indonesia CEO Martynas Grigalavicius said one of the company’s short-term plans would be to build a new hangar worth of US$20 million at Soekarno-Hatta International Airport, next to the existing hangar.
“We need to double or even triple our maintenance capacity. At present, our hangar is capable of receiving just three aircraft. However, sometimes we have to work with 12 aircraft,” Martynas said.
The 10,000-square-meter hangar would be able to accommodate five to six aircraft. Martynas said if the permit and contract were all settled, the construction of the new hangar could start in April next year, with the commercial operation set to begin in April 2021. With the new facility, the company expects to receive $40 million in revenue a year.
“Aside from the hangar, we also plan to increase our bonded logistics zone (PLB) business, and then we also want to increase our technical training business here, so we can expand, train more and more local people,” said Martynas.
