Subcontracting and joint bids are being studied as part of the recently announced co-operation between Air France Industries KLM Engineering & Maintenance and GMF AeroAsia.

Speaking to FlightGlobal at the recent MRO Asia event, business and base operations director Tazar Kurniawan says that the two companies are undertaking a six month study to explore how they might work together.

"This [partnership] will strengthen our position on airframe maintenance. Also, they have customers in this [region for] components. That means they can use our workshops to serve their customers in Asia," he explains.

The October agreement between the two companies followed on from earlier subcontracting work that GMF had done on behalf of AFI KLM E&M.

Having secured an industrial partner, the company has put on hold plans to secure a strategic investor. Kurniawan attributed the decision on weak market conditions.

GMF had intended to sell 20% of its stake to the strategic investor, through the issue of a new 10% stake and 89% shareholder Garuda Indonesia selling down 10% of its stake.

"It used to be that GMF was seeking [an investment] partnership... that includes private equity and industrial players. But considering that the moment is not good for us to sell our shares, we've proceeded with securing a strategic partner with an industrial player first, just to leverage on GMF's [strengths]," explains Kurniawan.

Until it secures that strategic investor, the company has chosen to pursue project-based financing through a recently signed agreement with China Communications Construction Indonesia. Indonesian media reports have indicated that the deal is valued at $500 million.

Asked if GMF has decided on the projects it will seek financing from CCCI, Kurniawan would only say that the financing will cover its domestic and international expansion plans.

Source: Cirium Dashboard