GMF AeroAsia has signed a Memorandum of Understanding (MoU) with the Batam Industrial Development Authority to develop the city’s Hang Nadim International airport for MRO purposes.

The MRO arm of Garuda Indonesia says that it plans to build aircraft maintenance facilities, hangars, and other supporting infrastructure, such as a logistics warehouse to support its line maintenance work.

A new 25,000m2 hangar will be built “to capture the international aircraft maintenance market.” Construction of the facility is expected to be completed by the second half of 2017 and will be fully operational by the second half of 2018.

GMF explains that Batam was chosen “due to its strategic location,” which is close to Singapore. Batam also has a “special customs flexibility,” along with potential business and trade growth opportunities, it adds.

“We’re optimistic [that the] expansion could drive our vision [of becoming one of the] top 10 MROs in the world by 2020,” says GMF president and chief executive Juliandra Nurtjahjo.

In April 2016, GMF had called off a joint venture agreement with Bintan Aviation Investments (BAI) to set up an MRO facility at the Bintan Industrial Park. Nurtjahjo said that the agreement with BAI was no longer valid. GMF was also undecided on whether it would continue with the development plans in Bintan.

Source: Cirium Dashboard