The two largest airlines in Indonesia, Lion Air and Garuda Indonesia, announced in August 2019 that they are strengthening their cooperation in the aviation industry with several initiatives, including developing joint hangars and establishing an aircraft tire Manufacturing plant. Two subsidiaries of both companies, Batam Aero Technic (BAT) and GMF AeroAsia, Garuda’s MRO unit signed a cooperation agreement to jointly construct and operate hangars on Batam, an island in Indonesia, which is part of a Free Trade Zone.
Up to eight hangars could be built that can accommodate up to 24 narrowbody aircraft. According to Rusdy Kirana, Lion Air Founder, locating aircraft maintenance and repair services reduces foreign exchange and allows technology transfer. The two companies hope to reduce MRO work sent overseas by 10% in the next decade through the project. Kirana noted the facilities would create 3,000 jobs, especially for workers from the Batam and Riau islands.
GMF AeroAsia and BAT will also collaborate with Michelin to establish the facility for retreading of aircraft tires. The plant is set to enhance domestic rubber absorption.
(Sources: Flight Global; Antara News)