Indonesia's GMF AeroAsia starts work on fourth hangar

Singapore
Source:
This story is sourced from Pro
See more Pro news »

GMF AeroAsia, the maintenance arm of Garuda Indonesia, has started construction of a 64,000m² (690,000 ft²) hangar at Soekarno-Hatta airport in Jakarta.

The company aims to complete the construction of this fourth hangar within 17 months and to start operations by July 2014.

The hangar, which is expected to cost Indonesian Rupiah (Rp) 500 billion ($52 million), will be able to accommodate 16 narrowbody aircraft simultaneously, and house office space and workshops.

"The fourth hangar is to answer the needs of the narrowbody aircraft maintenance market, both domestically and internationally," says GMF's president and chief executive Richard Budihadianto.

He adds that GMF needs to expand its capacity to keep pace with flag carrier Garuda's plans to grow its fleet to 194 aircraft by 2015. Third party maintenance work is also growing at between 15% and 20% annually, he says.

With the additional capacity from a fourth hangar, GMF is expecting revenues from base maintenance to increase from a target of $70 million in 2013 to $90 million when the hangar opens in 2014, and to $123 million in 2015.

Expanding its capacity will also allow GMF to absorb more work and reduce the outflow of maintenance work to countries like Singapore, Malaysia and Thailand.

Budihadianto previously told Flightglobal that GMF has plans to build a fifth hangar that can hold four widebodies, but a decision on that will depend on market conditions.