Photo: Korr Group

Meanwhile, several major airline operators, such as Lion Group, have also developed their MRO business, both to service their own aircraft and those of other airlines.

Harjanto, Director General for Metal, Machinery, Transportation Equipment and Electronic for Minister of Industry mentioned that in 2016 global airliner operators spent $72.81 billion for aircraft maintenance and service. Of this amount, North American airline operators contributed $21.2 billion, European Union ones contributed $20.7 billion and Asia Pacific airline operators contributed $13.3 billion.

“By 2025, global aircraft maintenance is projected to increase by 3.9 per cent to $106.54 billion. The Asia Pacific region is projected to record growth of 5.8 per cent, North America 0.9 per cent and the European Union by 2.45 per cent,” he said.

GMF AeroAsia has list its shares at Indonesia Stock Exchange (IDX) last year by offered 10 per cent of its total enlarged capital and paid up capital. GMFI is the 25th company to list its shares on the IDX and is the first MRO company in Indonesia to go public.

GMF will also continue to offer their shares to strategic investors. The amount offered is 20 per cent of the company’s issued and paid-up capital after the IPO. Strategic investors will have the opportunity to have a direct investment in the company.

In total, GMFI raised Rp1.13 trillion from the IPO. Joeniarto said the IPO is a strategic move for GMF to realize its vision of becoming the Top 10 MRO in the World, with revenues reaching $1 billion by 2021 whilst boosting the Indonesian economy.

GMF AeroAsia targeting to build aircraft facilities in Batam, Australia, East Asia, and the Middle East. The objective of company’s expansion is to level up its market share, the number of customers, and its global footprint. This will, in turn, increase GMFI’s revenue.

The MRO industry is an attractive and relatively safe industry that is not sensitive to changing economic conditions. This is because the maintenance and repair of aircraft is obligatory and must be done routinely by all airlines outside the competition among the airlines themselves.

As part of the service and equipment industry, the MRO business alone is quite profitable with profit margins reaching up to double digits, while Garuda AeorAsia itself recorded a 15 per cent profit margin growth in 2016.

In 2017, GMF AeroAsia aims to achieve $454 million in revenue, with a $69 million net profit which has risen after taking in $387 million in 2016 with a $58 million profit.

The company assets were recorded at $452.56 million per March 2017, higher than PT Citilink Indonesia’s $355.54 million in assets. Its outstanding loans stood at $15.18 million, with outstanding balance at $6.04 million.

Based at Jakarta Soekarno-Hatta International Airport, GMF AeroAsia counts internationally-renowned airlines from more than 55 countries around the world among its clients. Recently, GMF manage four hangars and land areas 970,000 square-meters in Cengkareng, Banten province.

Writing by Linda Silaen, Email :