Coordinating Minister For Maritime Affairs And Fisheries Meets AirAsia Boss To Discuss Expensive Avtur Issues

The Coordinating Minister for Maritime Affairs and Investment (Menkomarves) Luhut Binsar Pandjaitan directly met with Capital A Berhad (inducting AirAsia) CEO Tony Fernandes on the sidelines of the Bali International Airshow 2024.

Luhut said the two met to discuss Tony's information about the most expensive Indonesian fuel or aviation fuel in Southeast Asia.

"Earlier we talked to AirAsia, I spoke to Tony Fernandes, I saw the fuel price structure," said Luhut in Badung, Bali, Wednesday, September 18.

Coordinating Minister for Maritime Affairs and Fisheries took positive by studying and imitating neighboring countries, although he was surprised he firmly sent his deputy to study.

"Singapore alone can be cheaper than us, there must be a hidden high cost that we have to solve," he said.

In addition, the Minister of Maritime Affairs said that the Indonesian aircraft route was below normal standards, so he sent the Minister of Transportation to use Boeing's software to find out Indonesia's weaknesses.

It is known that on Thursday (5/9) Tony Fernandes conveyed that the fuel tariff for aircraft in Indonesia was 28 percent higher in the region.

This condition has an impact on the airline's operational costs which lead to the high price of domestic flight tickets in Indonesia.

On the first day of Bali International Airshow, the AirAsia boss finally met with the Coordinating Minister for Maritime Affairs, but in general his presence on the Island of the Gods this time was to lead the signing of his company's cooperation with Indonesia in the aircraft repair sector.

A subsidiary of Capital A which is engaged in Maintenance, Repair and Overhaul (MRO) Asia Digital Engineering (ADE), which was founded in 2020, is collaborating with PT Garuda Maintenance Facility Aero Asia Tbk (GMF).

The two collaborated to revolutionize landing gear services across the region, combining expertise and resources from both sides to set new standards in industry.

The GMF provides overhaul services and landing gear maintenance including total demolition, inspection, repair and reassembly of the landing gear component, supported by technology that is certified by international aviation authorities.

"Our investment in the landing gear business with GMF is a strategic step designed to accelerate our growth, by combining GMF expertise in landing gear services and efficiency excellence, we are ready to transform this industry and set new benchmarks," said Maesh Kumar, CEO of ADE.

Meanwhile Andi Fahrurrozi as CEO of GMF said this joint investment was to expand the steps of domestic companies in the global MRO market.

The partnership between ADE and GMF not only increases the service capabilities of the two companies but also reflects Southeast Asia's growing important role as a center of innovation and excellence in aviation maintenance, he said.

In addition, Tony Fernandes is also present in Bali to witness the signing of the Ground Team Red (GTR) transformational partnership with the global supplier of ESG Group electric vehicles.