MTU Maintenance Signs Agreement on Strategic Partnership in Indonesia
29 August 2007
MTU Maintenance has signed a joint operation agree-ment with the Indonesian Maintenance, Repair and Overhaul (MRO) provider Garuda Maintenance Facilities (GMF) AeroAsia, a 1.25-million-square-meter facility: as a strategic partner, MTU Maintenance will take care of CFM56-3 engine MRO activities for the Indonesian market jointly with GMF AeroAsia. Besides the engines of the 37-aircraft B737 Classic fleet of Garuda Indonesia, also engines of other GMF custom-ers will be maintained. Garuda Indonesia is Indonesia's largest airline and the 100-percent owner of GMF AeroAsia.
The contract was signed on Monday, August 27, in Jakarta for GMF AeroAsia by CEO Agus Sudarya, and for MTU Maintenance by Johan van der Sluis, responsible for marketing and sales activities in Indonesia. Also present were the minister of state-owned enterprises of Indonesia, Sofyan Jalil, as well as the president and CEO of Ga-ruda Indonesia, Emirsyah Satar, and the president and CEO of MTU Maintenance Zhuhai, Walter Strakosch.
"MTU Maintenance is the best partner to support our engine shop in its aim to re-duce turnaround time, improve quality and reduce costs," said Agus Sudarya. Johan van der Sluis stated: "Indonesia is the fourth most populated nation in the world and a very interesting market indeed. Its air traffic is one of the fastest growing world-wide." And he continued: "We are very glad and honored that MTU Maintenance Zhuhai is awarded the exclusive care of GMF's offload engines. It is another sign of recognition of our relatively young shop." MTU Maintenance Zhuhai, a joint venture of MTU Aero Engines and China Southern Airlines, is China’s largest maintenance shop. It focuses on the repair of V2500 and CFM56 engines. In addition to the CFM56-3, also the CFM56-5B and CFM56-7 have been included in the portfolio.
The contract is for a term of three years with an extension option of two years. Its value is around 200 million U.S. dollars, depending on the volume of materials man-agement support. With more than 200 active engines, the CFM56-3 is the most popular engine type in Indonesia, with numbers still increasing. Indonesia's civil avia-tion sector has grown since being liberalized in 2000 at a cumulative aggregate growth rate of well over 20 to 30 percent annually.
