GMF AeroAsia, the listed maintenance unit of Garuda Indonesia, has revealed ambitious plans to become the leading MRO provider in Southeast Asia.
This means international expansion, and the MRO provider has told the Nikkei Asian Review it aims to set up a joint venture facility in the United Arab Emirates to offer wide- and narrowbody maintenance from around 2020.
GMF’s main base is a huge site at Soekarno-Hatta International Airport near Jakarta, which comprises a 67,000m2 narrowbody maintenance hangar, the largest in the world, as well as a 22,000m2 widebody maintenance hangar, a 23,000m2 light maintenance hangar, and another 23,000m2 hangar with A330 maintenance facilities.
The company is also building a facility on the island of Batam, just a short hop from Singapore, where the region’s current dominant MRO player, ST Aerospace, is based.
GMF wants to boost its third-party revenue from 12% to roughly a third of total sales in the next five years, and new customers in the Middle East would help achieve that.
Most of the big gulf airlines have their own in-house facilities, but GMF will be eyeing the growing low-cost carrier sector in the UAE and Saudi Arabia.
In the first quarter of 2018 the company posted an operating profit of $12.8 million, a slight increase on the prior-year period.
Before anything opens in the UAE, GMF is targeting Russian and Indian airlines for new business, while in the first quarter the company won new heavy maintenance contracts from airlines in Thailand and Bangladesh.
In Q1 2018 GMF also added an airframe check capability for the Boeing 737 Max.