Batam Aero Technic (BAT), the company focused on maintenance and repair of aircraft under Lion Air Group, has executed an agreement with European-based Airbus SE, AirFi Indonesia, Honeywell, Pratt & Whitney Canada and Victor Enterprises (Authorized ExxonMobil) - Photo by the Company

JAKARTA (TheInsiderStories) – Batam Aero Technic (BAT), the company focused on maintenance and repair of aircraft under Lion Air Group, has executed an agreement with European-based Airbus SE, AirFi Indonesia, Honeywell, Pratt & Whitney Canada and Victor Enterprises | Authorized ExxonMobil, said the company yesterday (11/14).

According to president director of BAT, I Nyoman Rai Pering Santaya said, the parties will conduct joint business development, which aims to create synergy in order to enhance the ability of the company and supporting the aviation industry. He optimistic the cooperation will add diversification of the company’ businesses at MRO market in Indonesia and abroad.

He gave an example, the cooperation with Airbus to support the reliability operating Airbus 330 by Lion Air and Thai Lion Air to the world class airline. Until today, the Group operates Airbus 330-900NEO consists of two in Indonesia and one in Thailand.

While, with Victor Enterprises | Authorized ExxonMobil, covering cooperation in provision of lubricating oil. As an authorized distributor of ExxonMobil, the Singaporean firm is a regional supplier of fuels, lubricants and specialty chemicals.

“Through this cooperation will have a positive impact for the different parties and improve aircraft maintenance market uptake with the hope to develop a national aviation industry and market services to overseas,” added by Pering.

BAT began operating in 2014 and was established with the aim to maintain and repair the airplanes operated by members of the Lion Air Group, such as Lion Air, Wings Air, Batik Air, Lion bizjet, Malindo Air, Thai Lion Air and Space Aviation Academy (pilot school).

Now, the company has capability to treat the Airbus 320, Boeing 737 series, Airbus 330, ATR 72 series and employs approximately 2,000 personnel with the amount of investment that is embedded around Rp1 trillion (US$71.43 million).

The company has four units hangar for aircraft maintenance with a capacity of 12 Boeing 737 and Airbus 320, one unit hangar painting aircraft, one unit hangar for painting and aircraft maintenance, the building parts of 4,000 square meters and a unit of the buildings, facilities maintenance aircraft components. The maintenance and repair has been built on an area of 30 hectares at Batam Island.

BAT targeting to build eight units hangar that can accommodate 24 Boeing 737 and Airbus 320 collaborating with PT Garuda Maintenance Facility Aerowisata Tbk (IDX: GMFI). In the strategic plan, eight units are used jointly hangars, repair and maintenance function to serve the best companies from abroad with a capacity of 24 Boeing 737 and Airbus 320.

Indonesian government is committed to creating an aviation industry ecosystem to become the top 10 global aviation markets by 2020 and the world’ top five by 2034. Its begun by developed MRO services center with total investment $466 million in Batam.

Batam was chosen as MRO’ center because it had several advantages. Beside the location is adjacent to Singapore, Batam also has an Original Equipment Manufacturer (OEM).

Other reason, Batam has status as a Free Trade Zone areas with various business facilities and fiscal incentives on 30 hectares of land. Also, Batam near to Southeast and South Asia countries has a great potential to become a target market for aircraft MRO services.

The government’ commitment to make Batam an MRO center is marked by the construction of the facilities between Batam Aero Technic (BAT), French’ tyre maker Michelin Group and Garuda Maintenance Facility. Also, the groundbreaking of the second stage of the hangar construction by BAT and unit of PT Garuda Indonesia Tbk (IDX: GIAA).

The construction of an aircraft tire retreading plant were designed to improve operational cost-efficiency and to support the domestic aviation industry and as an import substitution. So far it must be brought from Thailand.

Based on official data, number of national air passengers will reach 270 million passengers in 2034, up more than 300 percent compared to 2014, according to the International Air Transport Association latest report. And Asia Pacific’ aircraft number in 2025 is predicted to reach 11,680 units and will become the largest MRO industrial market in the world with a value of $100 billion.

Currently, the MRO business in Indonesia is only able to serve 30 percent to 35 percent of the national market, the rest is absorbed by foreign MROs. Going forward, the potential for national MRO business in 2020 is estimated at $1.85 billion. Its expect the cooperation between Garuda and Lion Air is underway for other flight operations so the country’ airlines more affordable for the public.

by Linda Silaen, Email: linda.silaen@theinsiderstories.com