Garuda Indonesia expands maintenance facility

Garuda Indonesia opened its biggest aircraft maintenance facility at Soekarno-Hatta International Airport on Monday, which will support the state-owned airline’s fleet as well as regional carriers tapping into Indonesia’s growing aviation market.

The maintenance facility is the fourth for group subsidiary, Garuda Maintenance Facility (GMF) AeroAsia. With an area of about 67,000 sq. meters, it will nearly double GMF’s current capacity. The facility can store 16 narrow body aircraft, although due to limited personnel and technical capabilities, it can only handle 12 aircraft at the moment. GMF will invest a total of about 500 billion rupiah ($35 million) until it reaches full capacity in 2018.

The facility’s main purpose is to serve Garuda’s growing number of aircraft. The airline plans to add 21 aircraft this year to reach a total of 190. At the Paris Air Show in June, it inked a deal to purchase 60 aircraft from Boeing and 30 from Airbus, together worth nearly $20 billion at catalogue prices.

GMF posted revenue of $264 million in 2014, a 15% increase from the previous year. About 70% of its revenue comes from servicing Garuda aircraft, including those of budget carrier spin-off Citilink.

GMF’s President and Chief Executive Officer Richard Budihadianto said it also aims to increase revenue from foreign carriers. The company has plans to build a maintenance facility in Bintang Island, which is close to Singapore. Airlines in Asian countries such as Singapore and Australia can save time by stopping in Bintang instead of at Soekarno-Hatta. “We want at least 40-45% of revenue coming from third party carriers,” Budihadianto said.