Training-GMFAeroAsia.jpg GMF Aero Asia

Fast 5: GMF AeroAsia’s Progress To Become One Of the Biggest MROs

PT Garuda Maintenance Facility (GMF) AeroAsia listed its share on the Indonesia Stock Exchange on Oct. 10, 2017. As the Indonesian MRO approaches this anniversary, Fidiarta Andika, GMF AeroAsia's VP corporate secretary, discloses that the proceedings gained from the IPO were used for refinancing and working capital, and are now being deployed for business expansion.

GMF AeroAsia President Director Iwan Joeniarto last year said the IPO should help GMF realize its vision of becoming a Top 10 MRO in the world. How will GMF achieve this?

We are the using the IPO proceedings to expand our business, capacity and capabilities. Becoming a top 10 MRO in the world means that GMF must generate US$1 billion in revenue. As a public company, we’re expecting more opportunities to hold partnerships as a helping hand in achieving our vision.

We are developing a new landing gear shop, as one of the investments.

Are revenues on track to reach US$1 billion in revenues by 2021?

We are expecting to book US$1 billion in revenues and believe we will reach that target soon. Last year we made US$439.3 million, which was an increase of 13% year over year. We’re running on some inorganic strategies to reach the target, so we are not increasing capability, capacity and market expansion by our own, but rather, through collaborating with partners.

Is GMF still planning to open aircraft maintenance facilities in Batam (Indonesia), East Asia and the Middle East? If so, exactly where in East Asia and the Middle East?

The Middle East and South Asia are some of the highest growth markets—double-digit growth in the next five years, compared to global projections—so we have to consider it. We are still in negotiating with our partners to finalize our business studies to ensure the sustainability.

We are expanding our joint venture with Merpati Maintenance Facility and should gain EASA certification there.

As of May, GMF said it plans to add component maintenance for 120 part numbers this year. Is that on track, and what are GMF’s broader component maintenance aspirations?

Yes, we added 56 part numbers by August and expect to reach the target by the end of the year.

Is GMF still considering adding engine maintenance capability? If so, what?

We believe that engine maintenance will be our strength for the future. We’re developing capabilities for CFM56-5 and LEAP engines.

GMF AeroAsia

Fidiarta Andika, GMF AeroAsia's VP corporate secretary. 

TAGS: Asia Pacific
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