This Garuda Indonesia Subsidiary Targets 10 Percent Profit Growth In 2020

Garuda Indonesia Hangar. (Photo: DG of Civil Aviation)

JAKARTA - PT Garuda Maintenance Facility Aero Asia Tbk (code GMFI issuer) is optimistic that its performance will improve this year. The company believes that this year will return to record revenue growth, in line with expectations of increased flight activity for the group and the continued growth of revenue from Non-Group aircraft maintenance.

President Director of GMFI Tazar Marta Kurniawan said that GMFI's position as a major player in MRO (Maintenance, Repair & Overhaul) services will continue to maintain its customers, especially international airlines.

"Our customers from non-groups continue to increase, especially international airlines, this will be our focus in the future," said Tazar in a statement received by VOI, Tuesday, January 28.

In 2019, said Tazar, GMF managed to occupy the Top 9 Global Airframe MRO which was awarded by Aviation Week with a survey of working hours, where GMF managed to reach 3.2 million manhour sold.

In the same year, the company's performance was challenged by the decrease in flight hours for domestic aircraft, including those experienced by the group itself, Garuda and Citilink. The financial charge factor is also one of them, where the challenges faced by airlines all over the world currently lead to customers experiencing difficulties in paying, which also has an impact on GMFI's operations.

"In addition, the increase in the proportion of engine business that is material and technology intensive also contributes to the increase in material and subcontract loads," said Tazar.

Entering 2020, he explained, the company targets revenue to grow by around 5 percent with a net profit growth of around 10 percent. The target of increasing revenue this year will be followed by efficiency measures such as optimizing its capabilities and maximizing the use of the Part Manufacturing Approval (PMA).

"This year we are optimistic that there will be an increase in group revenue in line with the plan to add more fleets this year. From non-groups, this year we are targeting redelivery work to increase to 35 projects from the previous 14 projects in 2019, "said Tazar.

This year, the company will also allocate US $ 50 million for capex, most of which is allocated for business expansion both organically and non-organically.

"In the near future, the company will also increase its operational capacity by targeting the optimization of hangars in Denpasar, Surabaya and Pondok Cabe. This addition is to accommodate the increase in orders this year considering the current hangar utility conditions which have reached 100 percent," concluded Tazar.