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GMF AeroAsia invests in expansion
Maintenance, repair and
overhaul (MRO) company
GMF AeroAsia (GMFA)
will invest US$50 million to
build a fourth hangar at its
facility at Soekarno -Hatta
International Airport in Jakarta.
Construction will start in June and the facility
is expected to be operational 18 months later. e
hangar will be able to accommodate a widebody
aircra and will also have a dedicated bay for painting
and stripping -- a capability that the company
GMFA President and Chief Executive O cer
Richard Budihadianto says the investment will
cover the costs of construction and acquisition of
tooling and other equipment. e expansion is part
of GMFA's plan to increase capacity and capabilities
over the next four years as its parent company,
Indonesian national airline Garuda, expands its eet
to 122 aircra by 2014, from 84 now.
Budihadianto says that, by then, Indonesia's MRO
market will be worth a staggering US$2 billion.
Garuda's current eet is made up of six Airbus
A330-300s, four A330-200s, three Boeing 747-400s,
and an all-Boeing single-aisle eet comprising 40
Next Generation 737s, 17 737-400s, nine 737-300s
and ve 737-500s. GMFA's three hangars currently
can accommodate nine narrowbody and three
widebody aircra .
Budihadianto says GMFA will expand its
capabilities to include airframe heavy maintenance
(HVM) for Airbus A320s and A330s, once the
fourth hangar is operational. e company now
has C-check capability for both Airbus types, while
also o ering heavy maintenance capabilities and
component repair and overhaul for Boeing 747 and
737 family aircra , as well as McDonnell Douglas
GMFA is planning to add C- check capabilities
for Boeing 777 widebody twinjets in 2012, when
Garuda starts taking delivery of the ten 777-300ERs
it ordered in 2008. Capabilities will be expanded to
cover heavy maintenance only if the airline's 777 eet
is expanded to at least 20 aircra .
"Anything smaller than a eet of 20 does not
make business sense having HVM capability, as
it would be too expensive acquiring the necessary
maintenance tooling and equipment for the aircra
type," Budihadianto says.
Garuda has phased out its DC-10 eet, but GMFA
maintains that HVM capability for third-party
work, which Budihadianto says is gradually slowing
as operators park the ageing aircra due to high
operational and maintenance costs.
GMFA has engine MRO capability for CFM
International CFM56-3 power plants and an engine
test cell rated to 100,000 lbs thrust. e company
hopes to expand this capability to include -7B and
-7C series engines, which power the newer 737NG
GMFA has its own technical school which
offers training to both in-house and third-party
engineers and technicians. With certi cation from
25 international aviation authorities, including the
US Federal Aviation Administration (FAA) and
European Aviation Safety Agency (EASA), GMFA
hopes to secure certi cation from the Civil Aviation
Administration of China (CAAC) soon.
"China is a big MRO market to tap, but we need to
secure the certi cation before we bid for contracts,"
In 2010, third-party work accounted for about
30 percent of GMFA's revenue. Of this amount 30
percent came from contracts secured in Indonesia,
while 70 percent was from the global market.
Budihadianto expects the proportion of third-
party work to drop by 5-7 percent in 2011 due to
a projected increased in MRO work for anchor
customer Garuda .
Budihadianto says that although GMFA posted
a pro t in 2009, sales dropped 20 percent due to
the downturn in the MRO market that resulted
from airlines' capacity cuts in response to the global
economic slowdown. GMFA has estimated it will see
a similar drop in pro t for 2010.
"We can expect business to return to pre-crisis levels
from the second quarter of 2011," Budihadianto says.
Budihadianto concedes that GMFA is not in the
same league as Singapore Airlines' SIA Engineering
unit or Hong Kong Aircra Engineering (HAECO),
and would struggle to compete against them for
contracts in the global market.
"We are, however, con dent that with our pricing
and industry standard turnaround time will enable
us to secure third-party work," the GMFA chief says.
e company has no plans for a listing on the
Jakarta Stock Exchange, at least for the next two
years. GMFA was established in 1984 as Garuda
Maintenance Facilities Support Centre, before being
spun o as a separate entity in 2002.
e company will hire and train another 500
technicians and engineers over the next two years
expanding its workforce to 3,500 to cater for the
projected growth in business. n
The Jakarta-based maintenance services provider is planning to add a fourth hangar by 2013. William Dennis reports.
GMF plans to add Boeing 777 C-check capability
when Garuda starts taking delivery of the aircraft.
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